On the preceding graph, use the purple line (diamond symbol) to show the effect this employer mandate has on the supply of labor. Suppose the wage is free to balance supply and demand. Use the black point (plus symbol) to indicate the equilibrium wage and level of employment before this law, and use the grey point (star symbol) to indicate the equilibrium wage and level of employment after this law is implemented. True or False: Employers and employees are made worse off by this law. 0 True 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 benefit at all. Which of the following statements are true under this circumstance? Check all that apply. U Employees are neither better nor worse off than before the mandated benefit. [3 "he wage rate will decline by exactly $3. Cl "he supply curve of labor doesn't shift at all. Employers are worse off than before the mandated benefit. Cl The equilibrium quantity of labor will rise. D. LII. 'U FIUUICIIIB EIIILI HPPIILULIUIIB \\{au Suppose that Congress passes a law requiring employers to provide employees some benefit (such as healthcare) that raises the cost of an employee by $3 per hour. Assume that firms were not providing such benefits prior to the legislation. On the following graph, use the green line (triangle symbol) to show the effect this employer mandate has on the demand for labor. (I? \\_'j 20 -' Demand Supply A 18 16 _ New Demand 14 __ EqUiIibrium Before Law '5 O E 12 NewSupply a) Q. (I) i 10 u!- E V 8 __ a.) D) (U i 6 _ 13! EqUiIibrium After Law 0 1llllllllli O 1 2 3 4 5 6 7 8 9 10 Quantity of Labor (Thousands)