The following graph shows the labor market in the fast-foodindustry in the fictional town of Supersize City.
In this market, the equilibrium hourly wage is($______) , and the equilibrium quantity of laboris (______) workers.
Suppose a senator introduces a bill to legislate a minimumhourly wage of $6. This type of price control is called a(price ceiling/ quota/ tax/price floor?) .
For each of the wages listed in the following table, determinethe quantity of labor demanded, the quantity of labor supplied, andthe direction of pressure exerted on wages in the absence of anyprice controls.
WageLaborDemandedLaborSuppliedPressure on Wages (upward/downward?)(Dollars perhour)(Thousands ofworkers)(Thousands ofworkers)12 8
True or False: A minimum wage below $10 per hour is not abinding minimum wage in this market.