In a perfectly competitive labor market, the Smart Stop Gas Station hires workers.

A. For the gas station and the labor market, draw side-by-side graphs and show the following:

i. With the labels, WE and QE1, label the equilibrium wage and quantity of workers in the market

ii. With the label SG, label the labor supply curve for the gas station

iii. With label Q1, label the quantity of workers hired by the gas station

B. A minimum wage is now imposed on the labor market that is higher than WE. Show the following on your graph from part a:

i. Use the label WMin for the new wage in the market.

ii. Use the label QE2 for the quantity of workers hired in the market

iii. Use the label Q2 for the quantity of workers hired by the gas station.