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For Covid-19, Quebec is offering an extra $100 per week to Essential workers in order for them to stay on the job. Finance Minister Eric

For Covid-19, Quebec is offering an extra $100 per week to Essential workers in order for them to stay on the job.

Finance Minister Eric Girard announced that the province will give up to $100 extra weekly to cashiers, grocery stockers, delivery people, and everyone who keeps the province running.

Girard said that the program is meant to ensure that those essential workers will earn more by working than by applying for the federal government's emergency benefits program (CERB), which provides Canadians struggling financially with $2,000 a month.

Using the logic of supply and demand, explain what is happening in the low-wage labour market that characterizes many of these essential services. Make sure your answer addresses the following question:

  1. Generally speaking, what has the coronavirus changed in the overall labour market (i.e. both high and low skilled workers in a single market) and how has this changed the equilibrium wage and number of workers employed? Explain both the short-run and long-run effects.

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