In New York City, drivers for ride-hailing services are now guaranteed a minimum wage.

a. Draw a graph to show the economic effect of this price floor in the market for these drivers.

b. On the graph, identify the minimum wage, the deadweight loss, and the number of surplus drivers that result from the minimum wage.

Price 32 \"'""" per ride) Deadwelght loss $2.75 tax shilts Pn'ce consumers the supply curve pay an\" the 32'75' $21 75 ............................................... "p by $235 per-ride tax is ' I imposed i 81 . i i E 20.00 ................................................. ! .................................. i Price received by g ride-hailing 19.00 ............................................... companies after E paying the tax , L : : 0 425.000 500.000 Quantity (rides per day) The market for ride-hailing services before and after the imposition of a $2.75-per-ride tax shows that the tax shifts the supply curve up by $2.75, increasing the price paid by the consumer from $20 to $21.75 and decreasing the price received by ridehailing companies from $20 to $19. The quantity of rides provided also falls from 500,000 to 425,000