Page K 14 of E1/1102-Fall2015-Final - Page 13 of 14 - Name: (10pts) 3. Labor Market: This question asks you to apply concepts of supply and demand to the labor market taught in class (a) (2 pts) Set up the a supply and demand model of the labor market. Label the number of people working, and their wage. (b) (3 pts) Suppose the government decides to introduce a binding minimum wage. What are the effects on wages and unemployment due to this policy? (illustrate your answer and write one sentence) hs (c) (3 pts) Suppose the government is considering making unemployment benefits more generous. What would you expect to happen to wages and the number of people who are employed. What are the effects on wages and unemployment due to this policy? (illustrate your answer and write one sentence) (d) (2 pts) In no more than two sentences, describe two effects on US labor market of repealing the employ- ment at-will doctrine