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Figure 20-6 A graph of Wage versus Labor shows a straight line, Supply, increasing linearly from the origin to (100, 25) and a second straight
Figure 20-6 A graph of Wage versus Labor shows a straight line, Supply, increasing linearly from the origin to (100, 25) and a second straight line, Demand, decreasing linearly from (0, 25) to (100, 8.33). 3 horizontal lines extend from Wage, as follows, from top to bottom. Wage = 20, Wage = 15, and Wage = 10. Wage = 20 and Labor = 30 meet at a point on Demand, whereas Wage = 20 and Labor = 80 meet at a point on Supply. Wage = 15 and Labor = 60 meet on the intersection of Demand and Supply. Wage = 10 and Labor = 40 meet at a point on Supply, whereas Wage = 10 and Labor = 90 meet at a point on Demand. Refer to Figure 20-6 . This figure depicts labor demand and supply for the widget industry. The market equilibrium wage is $15. If the minimum wage in the economy is $10, how many hours of labor will be demanded from firms in the widget industry? a. 0 b. 90 c. 60 d. 10
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