Suppose a senator considers introducing a bill to legislate

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Suppose a senator considers introducing a bill to legislate a minimum hourly wage of $7.50.

Complete the following table with the quantity of labor supplied and demanded if the wage is set at $7.50.

Then indicate whether this wage will results in a shortage or a surplus. Hint: Be sure to pay attention to the units used on the graph and in the table. For example, type in 100,000 for 100 thousand workers.

$7.50 ???? ?????    ?????

Which of the following statements are true? Check all that apply.

___If the minimum wage is set at $10.50, the market will not reach equilibrium. ___In this labor market, a minimum wage of $7.50 is binding. __In the absence of price controls, a shortage puts upward pressure on wages until they rise to the equilibrium. ____Binding minimum wages cause frictional unemployment. 

Reference no: EM13975412

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