a.Suppose all employers in this labor market begin to voluntarily contribute $5,000 annually, per worker, toward health insurance?In the long run, after the labor market has fully adjusted to this change in the compensation structure, what would be the equilibrium wage and quantity of labor employed?

b.Alternatively, suppose workers in this labor market are generally young and therefore place very little value, if any, on health-insurance contributions from employers.How would the equilibrium wage and quantity of labor likely be affected if a law was passed mandating that all employers contribute at least $5,000 a year toward each worker's health insurance?(NOTE:Your need only provide relative effects, comparing to your values in a. above).

Employment Effects of Health Insurance The diagram below shows labor demand and supply in a local market. Assume, initially, that in this market employers do not pay for any kind of fringe benefit, such as health insurance, so that all employee compensation is in the form of wages. Answer the questions below the diagram. Annual Wage Local Labor Market S Wo: $54,000 D Lo: 35,000 Quantity of Labor