In2015, the country of Sorbet was suffering from a period of high unemployment. The newpresident, Gelato, appointed Sherrie Sherbert as his chief economist. Ms. Sherbert and her staff estimated these supply and demand curves for labor from data obtained from the secretary oflabor, JerryBenjamin:

QD=1005W

QS=25W20

where Q is the quantity of laborsupplied/demanded in millions of workers and W is the wage rate inscoops, the currency of Sorbet.

Currently, the law in Sorbet says that no worker shall be paid less than 11 scoops per hour. Estimate the quantity of laborsupplied, the number ofunemployed, and the unemployment rate.

The quantity of labor supplied is ___ million. (Enter your response as an integer.)

The number of unemployed is ___ million. (Enter your response as an integer.)

The unemployment rate is ____ percent. (Enter your response as an integer.)

PresidentGelato, over the objection of SecretaryBenjamin, has recommended to Congress that the law be changed to allow the wage rate to be determined in the market. If such a law was passed and the market adjustedquickly, what would happen to totalemployment, the size of the laborforce, and the unemploymentrate?

Total employment would be ___ million. (Enter your response as an integer.)

The size of the labor force would be __ million and the unemployment rate would be ___ percent.(Enter your responses as integers.)

1.) Using the point drawingtool, plot the wage and employment level with the minimum wage. Properly label your line.

2.) Using the point drawingtool, plot the wage and employment level when the market is in equilibrium. Properly label your line.

Note: Carefully follow the instructions above and only draw the required objects.

Will the Sorbet labor market adjust quickly to such a change in thelaw?

A.

Yes, it will adjust quickly due to explicit contracts.

B.

Yes, it will adjust quickly due to social contracts.

C.

No, because wages are not sticky.

D.

No, it will not adjust quickly due to implicit contracts.