On the preceding graph, use the pumie line (diamond symbol) to show the effect this employer mandate has on the suppiy of labor. Suppose the wage is free to balance supply and demand. Use the biack point (plus symbol') to indies-ta the equilibrium wage and ievel ofempioyment before this iaw, and use the grey point (star svmboi) to indicate the equiiibiium wage and levei of employment after this iaw is impiementeo'. True or False: Employers are made worse off but employees are made better off by this law. 0 True '3) False Suppose that. before the mandate, the wage in this market was $2 above the minimum wage. In this case, the wage rate with the employer mandate will be per hour, which will lead to a decrease V in the level of employment and an increase V in the level of unemployment. Now suppose that workers do not value the mandated benet at all. which of the following statements are true under this circumstance? Check ail that apply. C] The equilibrium quantity of labor will remain unchanged. C] The supply curve of labor shifts to the left. C] Employers are neither better nor worse offthan before the mandated benet. C] Employees are worse off than before the mandated benet. C] The wage rate will decline by less than $3. 8. Ch. 2|] Problems and Applications Q10 Suppose that Congress passes a law requiring employers to provide employees some benet [such as bealthcare) that raises the cost of an employee by $3 per hour. Assume that rms were not providing such benets prior to the legislation. On the following graph, use the green line (triangle symbol) to show the effect this empioyer mandate has on the demand for iabor. 20 + 13 New Demand 15 ___ 14 0 '5 C) E 12 New Supply 3 E 10 . + E I E a, 5 Equilibrium Beiore Law 3 a a "l\" 4 .. . Equmbnum After Law 2 El 1 2 a 4 5 a r s D 10 Quantity of Labor {Thousands} Suppose employees place a value on this benet exacljy equal to its cost