6. Assume a labour market where the only firm that hires workers has monopsony power. (a) In the diagram below (which you will need to replicate in your written answer), label the equilibrium wage as wage1 and the equilibrium quantity of workers as L1. (2 marks) (b) If the government were to impose a price ceiling on the wage of $20, i.e. firms are not allowed to pay more than $20 per worker. How would this affect your answer in part a)? Label your answer as wage2 and L2. (2 marks)

6. Assume a labour market where the only rm that hires workers has monopsony power. (a) In the diagram below (which you will need to replicate in your written answer), label the equilibrium wage as wagel and the equilibrium quantity of workers as L1. (2 marks) (b) If the government were to impose a price ceiling on the wage of $20, i.e. rms are not allowed to pay more than $20 per worker. How would this affect your answer in part a)? Label your answer as wageg and L2. (2 marks) Graph of the labour market