A. Complete the demand schedule and the supply schedule for labor and draw and label the corresponding combined graph for cashiers at a retail store. Demand Schedule Wage Quantity Demanded 5 Wage Supply Schedule Quantity Supplied 2 $10 $10 $12 $12 $14 $14 $16 $16 4 $18 1 $18 1. Write the market equilibrium "E" wage and E quantity: 2. If the wage is above the equilibrium then a will occur. (one word) 3. If the wage is below the equilibrium then a will occur. (one word) 4. In ten words or less define the Law of Demand for Labor: 5. In ten words or less define the Law of Supply for Labor: 6. Define minimum wage. Is it a wage (price) ceiling or floor? 7. Draw and label a dashed line representing a minimum wage on the above graph that would have an impact on the labor market. 1 8. In ten words or less describe the result of this minimum wage on the labor market. 9. In five words or less describe what would happen if the minimum wage was set below the equilibrium. B. Redraw graph 'A' and add a curve (or line) that represents a decrease in demand for labor, label it D2 and E2. 1. Circle or bold which of these could cause the decrease in demand for labor: a. Lower demand for the product or service b. Higher market price of the product being made c. Lower wages 2. According to the graph, the new equilibrium has a higher or lower (circle or bold one) wage and a higher or lower (circle or bold one) quantity. C. Redraw graph 'A' and add a curve (or line) that represents an increase in supply for labor, label S2 and E2. 1. Circle or bold which of these could cause the increase in supply for labor: a. Population growth b. Lower cost of raw materials (inputs) c. Higher wages 2. According to the graph, the new equilibrium has a higher or lower (circle or bold one) wage and a higher or lower (circle or bold one) quantity. 2