Suppose the minimum wage is $6 per hour in the market for unskilled labor, as shown...

   

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Suppose the minimum wage is $6 per hour in the market for unskilled labor, as shown on the following graph. Use the grey point (star symbol) to indicate the market equilibrium wage and quantity of labor in the absence of a minimum wage. Then use the purple point (diamond symbol) to indicate the level of employment at the minimum wage provided, and use the orange point (square symbol) to indicate the quantity of labor supplied at this minimum wage. Finally, use the green polygon (triangle symbols) to show the total wage payments to unskilled workers. Wage (Dollars per hour) 10 9 8 7 2 1 0 0 1 2 4 Quantity of Labor 3 5 7 6 8 (Millions of workers) Supply Minimum Wage 9 10 Demand Market Equilibrium Minimum Wage Outcome ☐ Labor Supplied at Minimum Wage Total Wage Payments (?) Now suppose the secretary of labor proposes an increase in the minimum wage. An increase in the minimum wage would Employment employment and Complete the following table by indicating whether the elasticity of demand, the elasticity of supply, both, or neither affect the magnitude of the change in employment and unemployment. Elasticity of Demand Elasticity of Supply Unemployment unemployment. The proposed increase in the minimum wage would decrease the total wage payments to unskilled workers if the demand for unskilled labor were Suppose the minimum wage is $6 per hour in the market for unskilled labor, as shown on the following graph. Use the grey point (star symbol) to indicate the market equilibrium wage and quantity of labor in the absence of a minimum wage. Then use the purple point (diamond symbol) to indicate the level of employment at the minimum wage provided, and use the orange point (square symbol) to indicate the quantity of labor supplied at this minimum wage. Finally, use the green polygon (triangle symbols) to show the total wage payments to unskilled workers. Wage (Dollars per hour) 10 9 8 7 2 1 0 0 1 2 4 Quantity of Labor 3 5 7 6 8 (Millions of workers) Supply Minimum Wage 9 10 Demand Market Equilibrium Minimum Wage Outcome ☐ Labor Supplied at Minimum Wage Total Wage Payments (?) Now suppose the secretary of labor proposes an increase in the minimum wage. An increase in the minimum wage would Employment employment and Complete the following table by indicating whether the elasticity of demand, the elasticity of supply, both, or neither affect the magnitude of the change in employment and unemployment. Elasticity of Demand Elasticity of Supply Unemployment unemployment. The proposed increase in the minimum wage would decrease the total wage payments to unskilled workers if the demand for unskilled labor were

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In the first part of the question you are shown a graph with supply and demand curves for unskilled labor along with a horizontal line indicating a minimum wage set at 6 per hour The graph includes ma... View the full answer