Labor Market Lab Assignment There are three parts to the Lab. 1. Professor Smart wants her son, Adam, to get a job. Adam's father suggests that Adam should continue to get an allowance only if he gets a job. Ada m's mother suggests Adam should not get an allowance more whether he gets a job or not. A. What economic concept might Ada m's mother know about? B. Which plan does your group think is the best? WHY? (discuss and vote) 2. Group Labor Supply. Complete the chart below by filling in the top three activities you like to do in your leisure time, then fill in the next three columns for three other people in your lab group. Chart A Student Put your name Person 1 Person 2 Person 3 Name here We know the opportunity cost of work is leisure time. This means for every hour you work you give up something else you'd like to be doing. If the University offered you a job mowing the grass on campus using a manual push mower (hard workl), how many hours per week would you work at the wage rates in the chart below? Are there wages that are too low for you to work at all? Is there a point at which you are ma king enough money per week and you can cut back on work to have more leisure? After you fill in the hours you'd work, fill in the same information for the three people in the chart above. Total the quantity of hours for each wage rate in the last row and use this to create a labJsupply curve for your group. Chart B $15 an $20 an $50 an Student $5 an $10 an $30 an $100 Name hour hour hour hour hour hour an hour Put your name here Person 1 Person 2 Person 3 It Total Labor Supply: Hourly wage $100 $50 $30 $20 $10 Labor Demand 0 10 20 30 40 50 60 70 80 90 100 120 130 140 150 160 hours of work **To add to this graph, double click on the image and use Google draw.\"To add to this graph, double click on the image and use Googie draw. Use the model of the labor market to plot the labor supply for your group on the graph provided and answer the following questions. (See drawing instructions below the graph.) A. What is the equilibrium wage? B. What is the equilibrium quantity oflabJ units? C. If the university chose to pay 510 instead of the equilibrium hourly wage, what would happen? Quantity of labor units demanded: Quantity of labor units supplied: Is there a shortage or a surplus? Is there an unemployment problem in this scenario? 3. Finally, evaluate how the labor market would respond to changing economic conditions in the scenarios below. A. Assume the price of gas-powered push lawn mowers falls, and the university decides to buy several. They also decide to start a Wolfpack lawn mowing service which sells the service to properties close to campus i. What happens to the equilibrium wage for lawn care workers? Why? ii. What is the new equilibrium quantity of lawn care workers? B. Assume the Chancellor decides NCSU needs more natural areas and less grass on campus. i. What happens to the equilibrium wage for lawn care workers? Why? ii. What is the new equilibrium quantity of lawn care workers