Suppose that Congress cares only for the welfare of the working poor and is considering raising the hourly minimum wage from $6 to $12. You have been called as an economic expert to study that market and testify about your findings. If necessary, assume that $12 is above the market equilibrium wage. You estimate the demand for labor by businesses to be QD = 100 - 2.5W. You also estimate the supply of labor by workers to be QS = 10W. W is the hourly wage rate, and both quantities are measured each week in thousands of hours.

4.6.

The President is impressed and asks for your long-term opinion on the bill, specifically inquiring about the two viewpoints of the aforementioned Senators. (Senator 1 is concerned with welfare as measured by total earnings; Senator 2 is concerned with unemployment) Recalling that the LR demand for labor is QD = 160 - 10W if the minimum wage rises to $12/hour, what do you say?

		A.Pass the bill based on both views.
		B.Veto the bill based on the first Senator's view, pass the bill based on the second Senator's view.
		C.Pass the bill based on the first Senator's view, veto the bill based on the second Senator's view.
		D.Veto the bill based on both views.