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. 20 Demand Supply A 18 New Demand 16 14 12 New Supply 10 Wage (Dollars per hour) Equilibrium Before Law Equilibrium After Law N 0 2 3 4 5 6 7 8 9 10 Quantity of Labor (Thousands) Suppose employees place a value on this benefit exactly equal to its cost.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 better 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 I:] per hour, which will lead to a decrease V in the level of employment and an increase V in the level of unemployment. a decrease Now suppose that workers do not value the mandated benefit at all. no changes an increase Which of the following statements are true under this circumstance? Check all that apply. C] Employees are worse off than before the mandated benefit. C] The equilibrium quantity of labor will remain unchanged. [:1 Employers are neither better nor worse off than before the mandated benefit. C] The supply curve of labor shifts to the left. C] The wage rate will decline by less than $3