The next question refer to the following demand and supply table.

Price Quantity Supplied Quantity Demanded

$ 10 8 4

$9 7 5

$8 6 6

$7 5 7

$6 4 8

(a) Equilibrium price and quantity are?

None of the answers given are correct

$8 and 6

$7 and 5

$6 and 5

(b) At $10, there would be a ______ in this market.

Surplus of 2

Shortage of 4

Shortage of 2

Surplus of 4

3.When demand decreases in a graph of demand and supply?

both equilibrium price and quantity will decrease.

equilibrium price will decrease, but equilibrium quantity will increase.

equilibrium price will increase, but equilibrium quantity will decrease.

both equilibrium price and quantity will increase.

4.When supply decreases in a graph of demand and supply:

both equilibrium price and quantity will increase.

both equilibrium price and quantity will decrease.

equilibrium price will decrease, but equilibrium quantity will increase.

equilibrium price will increase, but equilibrium quantity will decrease.

12.A price floor

results in a shortage if the floor price is greater than the equilibrium price.

always results in a surplus.

results in a surplus if the floor price is greater than the equilibrium price.

always results in a shortage.

Answer the next question based on the table below.

Wage rate (dollars per hour) Labor supplied (millions of workers) Labor demanded (millions of workers)

11 7 1

10 6 2

9 5 3

8 4 4

7 3 5

15.(a) What is the equilibrium wage rate in an unregulated market (no minimum wage)?

$9.00 per hour

$8.00 per hour.

$10.00 per hour

$7.00 per hour

15(b) What is the level of unemployment (in millions of workers) if the minimum wage is set at $10 per hour?

4

2

0

1

15.(C) If the minimum wage is set at $11 per hour, the number of unemployed workers will be

0

4 million

6 million

2 million

15.(D) If the market is in equilibrium today, and tomorrow a minimum wage is set at $10 per hour, the number of workers who will lose their jobs is

1 million

0

4 million

2 million