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6. (8 points) Suppose QB : 20 .5P is the demand for low skilled workers in Massachusetts is where P is the hourly wage (the

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6. (8 points) Suppose QB : 20 .5P is the demand for low skilled workers in Massachusetts is where P is the hourly wage (the cost to employers of an hour of labor) and Q is measured in millions of hours worked, and Q3 : 2P 5 is the supply of low skilled workers (measured in millions of hours worked) in Massachusetts. The current legal minimum wage is $8, which is below the market wage. (a) What is the impact of increasing the minimum wage from $8 to $12 on tcs tal employment in Massachusetts? (Hint: Drawing a supply and demand graph may help you). (b) What is the impact of increasing the minimum wage from $8 to $12 on the total amount paid by employers for lowskilled workers in Massachusetts? (c) When the minimum wage is $12, what is the shortage, or surplus, of workers (in millions of hours)

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