Wage rate Quantity demanded Quantity supplied (dollar per hour) (hours per week) (hours per week) (a) The table above shows the demand for and supply of labour in a small city economy. (i) Draw the demand and supply curves. What are the equilibrium wage and the level of employment? (5 marks) (ii) Currently, the minimum wage is set at $35 per hour. How many hours are worked? How many hours of labour service are unemployed? (5 marks) (iii) if the minimum wage is raised to $45 per hour. what are employment and unemployment? (5 marks) (b) The SC smartphone market is expanding rapidly recently. Due to the advancement of technology. the production cost is getting lower and lower but why the price of 50 smartphones keep rising? Illustrate your answer with a demand-supply diagram. (I0 marks) (0) Tickets to a concert sell for $10. But at that price. the demand is substantially greater than the available number of tickets. is the value or marginal benet of an additional ticket greater than, less than. or equal to $10? How might you determine that value? (8.3 marks) George has a $600 annual entertainment budget that he uses to buy trips to the movies and dinners at local restaurants. The figure below shows indifference curves and budget lines for these two goods. 50 Movies (number per year) 40 30 20 10 BL2 - 12 BLI 0 10 20 30 40 50 Dinners [number per year) a) Along budget line BLi, what is the price of a dinner? (6.3 marks) b) Explain how the invisible hand delivers an efficient market outcome. (7 marks) c) Budget line BL2 represents a change in the price of dinner from that along BL1. What is the new price of dinners along this budget line? (7 marks) d) What combination of dinners and movies will George select along budget line BL2? (7 marks) e) Use the information in this problem to give two points on George's demand curve for dinners? (6 marks)