Read the following information and answer the questions below:

The national minimum wage is $7.25 per hour for most occupations in the private sector. Over the past several years, support for an increase in the minimum wage has come from a wide variety of sources.

Many of those who support an increase in the minimum wage believe this is one way the government should exercise its social responsibility to reduce poverty. The following items address the idea of raising the minimum wage from the current federal minimum of $7.25 per hour.

The figure came from chapter 15 of your Principles of Macroeconomics-Mankiw 10^th Edition.

1. Visual Communication: Look at the above image about supply and demand.
   1. Short answer: What type of image is shown? (Choose the best answer.) (VC1).
      1. photograph
      2. equation
      3. graph
      4. table
2. Write a paragraph explaining the meaning or purpose of the image. What information does this image tell the reader? Include an explanation of the terms: L_D, L_E, L_S, and W_E. (VC2)
3. Write a paragraph explaining some consequences or implications of the images meaning. What would the reader conclude about the details in the image?

Question 1 Responses: (type your responses to 1b. and 1c. in the space here)

1. Quantitative Literacy: Examine the data from the same image above. Put in the following data points for the image.

• L_D = 4000 workers hired
• L_E = 5000 workers hired
• L_S = 6000 workers hired
• Minimum Wage = $15.00/hour
• W_E = $7.25/hour

1. Calculate the Surplus of Labor as shown in the image. You should already know how to calculate the surplus. Show the formula and show how you insert the correct data into the formula. (QL2-3) (Type your response in this space.)
2. Interpret & analyze results: In a sentence or two, explain your results of your calculations above. What can a reader conclude from these results? (QL 1 & 4) (Type your response in this space.)
3. Assumptions & Recommendations: Based on the data from your calculations, what assumptions can be made about how changing the minimum wage affects workers in the labor market? (QL5) What would you recommend to national leaders as the best policy? (QL6) (Type your response in this space.)

NEED ANSWERS TO EVERYTHING PLEASE