Q&A Hero

Q: The incidence of a tax depends on whether the government collects the tax from buyers or sellers.

Q: If the demand curve for a product is vertical, any tax increase on the product is paid for entirely by the consumer.

Q: A tax is efficient if it imposes a large excess burden relative to the tax revenue it raises.

Q: The division of the burden of a tax between buyers and sellers in a market is called tax allocation.

Q: A tax that imposes a small excess burden relative to the tax revenue that it raises is A) a payroll tax. B) a sin tax. C) an efficient tax. D) a FICA tax.

Q: Economists have shown that the burden of a tax is the same whether the tax is collected from the buyer or the seller. Why, then, are gasoline and cigarette taxes imposed on sellers? A) Sellers are more honest than buyers. B) The demand for both gasoline and cigarettes is very elastic. C) The Equal Protection Clause of the U.S. Constitution prohibits the government from imposing taxes like these on buyers. D) It is more difficult for buyers to keep track of their purchases, and for the government to verify that the right of amount of tax revenue is collected.

Q: When the government taxes a good or service, it A) affects the market equilibrium for that good or service. B) eliminates the deadweight loss associated with the good or service. C) increases consumer surplus for the good or service. D) increases producer surplus for the good or service.

Q: The payroll tax is a tax imposed on ________ that is used to fund Social Security and Medicare. A) employers only B) workers only C) employers and workers D) the unemployed

Q: When Congress passed a law that imposed a tax designed to fund its Social Security and Medicare programs it wanted employers and workers to share the burden of the tax equally. Most economists who have studied the incidence of the tax have concluded A) the tax is not high enough to cover the future costs of Social Security and Medicare. B) the tax on employers is too high because it reduces the employment of low-skilled workers. C) the burden of the tax falls almost entirely on workers. D) the tax rate should be greater for high income workers than for low income workers.

Q: Suppose that in Canada the government places a $1,500 tax on the buyers of new snowmobiles. After the purchase of a new snowmobile, a buyer must pay the government $1,500. How would the imposition of the tax on buyers be illustrated in a graph? A) The tax will shift the supply curve to the left by $1,500. B) The tax will shift the demand curve to the right by $1,500. C) The tax will shift both the demand and supply curve to the right by $1,500. D) The tax will shift the demand curve to the left by $1,500.

Q: Suppose an excise tax of $1 is imposed on every case of beer sold and sellers are responsible for paying this tax. How would the imposition of the tax be illustrated in a graph? A) The supply curve for cases of beer would shift to the right by $1. B) The supply curve for cases of beer would shift to the left by more than $1. C) The supply curve for cases of beer would shift to the left by less than $1. D) The supply curve for cases of beer would shift to the left by $1.

Q: Figure 4-10 Refer to Figure 4-10. Suppose the market is initially in equilibrium at price P1 and then the government imposes a tax on every unit sold. Which of the following statements best describes the impact of the tax? A) The consumer will bear a smaller share of the tax burden if the demand curve is D1. B) The consumer's share of the tax burden is the same whether the demand curve is D1 or D2. C) The consumer will bear a smaller share of the tax burden if the demand curve is D2. D) The consumer will bear the entire burden of the tax if the demand curve is D2 and the producer will bear the entire burden of the tax if the demand curve is D1.

Q: Figure 4-9 Refer to Figure 4-9. Suppose the market is initially in equilibrium at price P1 and now the government imposes a tax on every unit sold. Which of the following statements best describes the impact of the tax? For demand curve D1 A) the producer bears a greater share of the tax burden if the supply curve is S2. B) the producer bears a greater share of the tax burden if the supply curve is S1. C) the producer's share of the tax burden is the same whether the supply curve is S1or S2. D) the producer bears the entire burden of the tax if the supply curve is S1 and the consumer bears the entire burden of the tax if the supply curve is S2.

Q: Suppose the demand curve for a product is horizontal and the supply curve is upward sloping. If a unit tax is imposed in the market for this product A) sellers bear the entire burden of the tax. B) the tax burden will be shared among the government, buyers and sellers. C) buyers bear the entire burden of the tax. D) the tax burden will be shared by buyers and sellers.

Q: Suppose the demand curve for a product is vertical and the supply curve is upward sloping. If a unit tax is imposed in the market for this product A) sellers bear the entire burden of the tax. B) buyers bear the entire burden of the tax. C) the tax burden will be shared equally between buyers and sellers. D) buyers share the burden of the tax with government.

Q: The government proposes a tax on imported champagne. Buyers will bear the entire burden of the tax if the A) supply curve for imported champagne is vertical. B) demand curve for imported champagne is vertical. C) demand curve for imported champagne is horizontal. D) demand curve is downward sloping and the supply curve is upward sloping.

Q: Figure 4-8 Figure 4-8 shows the market for beer. The government plans to impose a unit tax in this market. Refer to Figure 4-8. As a result of the tax, is there a loss in consumer surplus? A) Yes, because consumers paying a price above the economically efficient price. B) No, because the producer pays the tax. C) No, because the market reaches a new equilibrium D) No, because consumers are charged a lower price to cover their tax burden.

Q: Figure 4-8 Figure 4-8 shows the market for beer. The government plans to impose a unit tax in this market. Refer to Figure 4-8. How much of the tax is paid by producers? A) $2 B) $5 C) $7 D) $12

Q: Figure 4-8 Figure 4-8 shows the market for beer. The government plans to impose a unit tax in this market. Refer to Figure 4-8. For each unit sold, the price sellers receive after the tax (net of tax) is A) $20. B) $22. C) $27. D) $32.

Q: Figure 4-8 Figure 4-8 shows the market for beer. The government plans to impose a unit tax in this market. Refer to Figure 4-8. The price buyers pay after the tax is A) $7. B) $20. C) $22. D) $27.

Q: Figure 4-8 Figure 4-8 shows the market for beer. The government plans to impose a unit tax in this market. Refer to Figure 4-8. How much of the tax is paid by buyers? A) $2 B) $5 C) $7 D) $12

Q: Figure 4-8 Figure 4-8 shows the market for beer. The government plans to impose a unit tax in this market. Refer to Figure 4-8. What is the size of the unit tax? A) $2 B) $5 C) $7 D) $12

Q: The actual division of the burden of a tax between buyers and sellers in a market is called A) tax incidence. B) tax liability. C) tax bearer. D) tax parity.

Q: The cities of Francistown and Nalady are five miles apart. Francistown enacts a rent control law that puts a ceiling on rents well below their equilibrium market value. Predict the impact of this law on the competitive equilibrium rent in Nalady, which does not have a rent control law. a. Illustrate your answer with one demand and supply graph for the apartment market in Francistown and another demand and supply graph for the apartment marketing Nalady. b. Make sure that your graphs clearly show (1) the initial equilibrium before the rent control in both markets and (2) what happens after the imposition of rent control. c. Clearly show any shifts in the demand or supply curves, and the movement along the curves for each market. d. Label your graphs fully and provide written explanation for your graphs.

Q: Table 4-5Price per Bushel (dollars)Quantity Demanded (bushels)Quantity Supplied (bushels)$240,0000434,0004,000628,0008,000824,00016,0001020,00020,0001218,00028,0001412,00036,000166,00040,000Table 4-5 above contains information about the corn market. Answer the following questions based on this table.Refer to Table 4-5. An agricultural price floor is a price that the government guarantees farmers will receive for a particular crop. Suppose the federal government sets a price floor for corn at $12 per bushel.a. What is the amount of shortage or surplus in the corn market as result of the price floor?b. If the government agrees to purchase any surplus output at $12, how much will it cost the government?c. If the government buys all of the farmers' output at the floor price, how many bushels of corn will it have to purchase and how much will it cost the government?d. Suppose the government buys up all of the farmers' output at the floor price and then sells the output to consumers at whatever price it can get. Under this scheme, what is the price at which the government will be able to sell off all of the output it had purchased from farmers? What is the revenue received from the government's sale?e. In this problem we have considered two government schemes: (1) a price floor is established and the government purchases any excess output and (2) the government buys all the farmers' output at the floor price and resells at whatever price it can get. Which scheme will taxpayers prefer?f. Consider again the two schemes. Which scheme will the farmers prefer?g. Consider again the two schemes. Which scheme will corn buyers prefer?

Q: Figure 4-7 Refer to Figure 4-7 which shows the market for vitamins. Suppose the government imposes a price ceiling of Pv. How will the price ceiling affect the quantity supplied, quantity demanded and quantity exchanged?

Q: What is the difference between scarcity and a shortage?

Q: What is a black market?

Q: What is the difference between a price ceiling and a price floor? Compared to the competitive equilibrium price, where must price ceilings and price floors be set to have an effect on the market.

Q: Price ceilings are illegal in the United States.

Q: Rent control is an example of a price ceiling.

Q: Black markets only exist in developing nations.

Q: Shortage means the same thing as scarcity.

Q: A price ceiling is a legally determined maximum price that sellers may charge.

Q: The minimum wage is an example of a price ceiling.

Q: Companies in the sharing economy have the potential to lower the equilibrium price in their market, and by doing so increase efficiency. This would have a tendency to A) increase producer surplus and increase deadweight loss. B) increase consumer surplus and decrease deadweight loss. C) decrease consumer surplus and decrease producer surplus. D) maximize consumer surplus and minimize producer surplus.

Q: Article Summary In an attempt to discourage smoking, New York City Mayor Michael Bloomberg proposed a bill which would set a $10.50 minimum price for a pack of cigarettes. The bill would also prohibit retailers from offering any discounts such as 2-for-1 offers or accepting discount coupons. New York City already has the highest cigarette tax in the country, at $5.85 per pack, and the state of New York is one of many which already require cigarettes be marked up by a specified percentage. This bill is a companion to one which would require stores to keep tobacco products hidden from sight. Although the bills are expected to be challenged in court, a precedent has been set in Rhode Island, where a court upheld a ruling allowing the city of Providence to forbid retailers from accepting coupons and offering discounts on cigarettes. Source: Vivian Yee, "Bloomberg Seeks End to Cheap Cigarettes," New York Times, March 26, 2013. Refer to the Article Summary. The minimum price of $10.50 per pack of cigarettes being proposed by mayor Bloomberg would have which of the following effects on the market for cigarettes? A) Consumer surplus will increase. B) Producer surplus will increase. C) Deadweight loss will increase. D) Market efficiency will increase.

Q: Article Summary In an attempt to discourage smoking, New York City Mayor Michael Bloomberg proposed a bill which would set a $10.50 minimum price for a pack of cigarettes. The bill would also prohibit retailers from offering any discounts such as 2-for-1 offers or accepting discount coupons. New York City already has the highest cigarette tax in the country, at $5.85 per pack, and the state of New York is one of many which already require cigarettes be marked up by a specified percentage. This bill is a companion to one which would require stores to keep tobacco products hidden from sight. Although the bills are expected to be challenged in court, a precedent has been set in Rhode Island, where a court upheld a ruling allowing the city of Providence to forbid retailers from accepting coupons and offering discounts on cigarettes. Source: Vivian Yee, "Bloomberg Seeks End to Cheap Cigarettes," New York Times, March 26, 2013. Refer to the Article Summary. The minimum price of $10.50 per pack of cigarettes being proposed by Mayor Bloomberg is an example of A) a price ceiling. B) a price floor. C) an economically efficient price. D) a black market price.

Q: Economists are reluctant to state that price controls are desirable or undesirable because A) it is impossible to evaluate the impact on quantity demanded and quantity supplied as a result of price controls. B) whether the gains from the winners exceed the losses from the losers is not strictly an economic question. C) sometimes price controls result in increases in economic efficiency and sometimes they result in decreases in economic efficiency. D) economists are reluctant to conduct positive analysis of price controls.

Q: Which of the following is not a result of government price controls? A) Some people win and some people lose. B) Price controls benefit poor consumers but harm producers and wealthy consumers. C) Price controls decrease economic efficiency. D) A deadweight loss will occur.

Q: Suppose a price floor on sparkling wine is proposed by the Health Minister of the country of Vinyardia. What will be the likely effect on the market for sparkling wine in Vinyardia? A) Consumer surplus will increase. B) Producer surplus will increase. C) Deadweight loss will increase. D) Market efficiency will increase.

Q: Suppose a price floor on sparkling wine is proposed by the Health Minister of the country of Vinyardia. What will be the likely effect on the market for sparkling wine in Vinyardia? A) Quantity demanded will decrease, quantity supplied will increase, and a surplus will result. B) Quantity demanded will increase, quantity supplied will decrease, and a surplus will result. C) Quantity demanded will decrease, quantity supplied will increase, and a shortage will result. D) Quantity demanded will increase, quantity supplied will decrease, and a shortage will result.

Q: In cities with rent controls, the actual rents paid can be higher than the legal maximum. One explanation for this is A) rent control laws are so complicated that landlords and tenants may not be aware of what the legal price is. B) landlords are allowed to charge more than the legal maximum on some apartments so long as they charge less on others. C) because there is a shortage of apartments, tenants often are willing to pay rents higher than the law allows. D) the legal penalty landlords face for charging more than the legal maximum rent is less than the revenue earned by charging their tenants more than the maximum rent.

Q: In the economic sense, almost everything is scarce. ________ of a good or service occurs when the quantity demanded is greater than the quantity supplied at the current market price. A) Scarcity B) A shortage C) A surplus D) An overstock

Q: Which of the following is not a result of imposing a rent ceiling? A) Some consumer surplus is converted to producer surplus. B) There is a reduction in the quantity supplied of apartments. C) There is an increase in the quantity demanded of apartments. D) The marginal benefit of the last apartment rented is greater than the marginal cost of supplying it.

Q: David Card and Alan Kruger conducted a study of fast-food restaurants in New Jersey and Pennsylvania. The study found that A) there was a large reduction in employment of low-skilled workers when the minimum wage was raised in these states. B) the earned income tax credit is more effective in raising the incomes of low-skilled workers than increases in the minimum wage. C) increases in the minimum wage had a very small impact on employment. D) increases in the prices of food have a greater effect on wage increases in New Jersey than in Pennsylvania.

Q: Congress passed the ________ in 1996, the purpose of which was to phase out price floors and return to a free market in agriculture A) Rice and Beans Act B) Smoot-Hawley Act C) Agribusiness Act D) Freedom to Farm Act

Q: Figure 4-6 Figure 4-6 shows the demand and supply curves for the almond market. The government believes that the equilibrium price is too low and tries to help almond growers by setting a price floor at Pf. Refer to Figure 4-6. What area represents the deadweight loss after the imposition of the price floor? A) C + D + G B) F + G C) C + D D) C + D + F + G

Q: Figure 4-6 Figure 4-6 shows the demand and supply curves for the almond market. The government believes that the equilibrium price is too low and tries to help almond growers by setting a price floor at Pf. Refer to Figure 4-6. What area represents the portion of consumer surplus that has been transferred to producer surplus as a result of the price floor? A) B B) B + C C) B + E D) E

Q: Figure 4-6 Figure 4-6 shows the demand and supply curves for the almond market. The government believes that the equilibrium price is too low and tries to help almond growers by setting a price floor at Pf. Refer to Figure 4-6. What is the area that represents producer surplus after the imposition of the price floor? A) A + B + E B) B + E C) B + E + F D) B + C + D + E

Q: Figure 4-6 Figure 4-6 shows the demand and supply curves for the almond market. The government believes that the equilibrium price is too low and tries to help almond growers by setting a price floor at Pf. Refer to Figure 4-6. What area represents consumer surplus after the imposition of the price floor? A) A + B + E B) A + B C) A + B + E + F D) A

Q: A minimum wage law dictates A) the minimum quantity of labor that a firm must employ. B) the lowest wage that firms may pay for labor. C) the highest wage that firms must pay for labor. D) the minimum qualifications for labor.

Q: In order to be binding, a price ceiling A) must lie above the free market equilibrium price. B) must lie below the free market equilibrium price. C) must coincide with the free market equilibrium price. D) must be high enough for firms to earn a profit.

Q: Which term refers to a legally established minimum price that firms may charge? A) a price ceiling B) a subsidy C) a price floor D) a tariff

Q: Figure 4-5 Figure 4-5 shows the market for apartments in Springfield. Recently, the government imposed a rent ceiling of $1,000 per month. Refer to Figure 4-5. Suppose that instead of a rent ceiling, the government imposed a price floor of $2,000 per month for apartments. What is the value of the deadweight loss after the imposition of the price floor? A) $50,000 B) $125,000 C) $175,000 D) $260,000

Q: Figure 4-5 Figure 4-5 shows the market for apartments in Springfield. Recently, the government imposed a rent ceiling of $1,000 per month. Refer to Figure 4-5. Suppose that instead of a rent ceiling, the government imposed a price floor of $2,000 per month for apartments. What is the value of the portion of consumer surplus transferred to producers as a result of the price floor? A) $40,000 B) $100,000 C) $125,000 D) $140,000

Q: Figure 4-5 Figure 4-5 shows the market for apartments in Springfield. Recently, the government imposed a rent ceiling of $1,000 per month. Refer to Figure 4-5. Suppose that instead of a rent ceiling, the government imposed a price floor of $2,000 per month for apartments. What is the value of producer surplus after the imposition of the price floor? A) $40,000 B) $240,000 C) $270,000 D) $290,000

Q: Figure 4-5 Figure 4-5 shows the market for apartments in Springfield. Recently, the government imposed a rent ceiling of $1,000 per month. Refer to Figure 4-5. Suppose that instead of a rent ceiling, the government imposed a price floor of $2,000 per month for apartments. What is the value of consumer surplus after the imposition of the price floor? A) $6,000 B) $30,000 C) $100,000 D) $240,000

Q: Figure 4-5 Figure 4-5 shows the market for apartments in Springfield. Recently, the government imposed a rent ceiling of $1,000 per month. Refer to Figure 4-5. Suppose that instead of a rent ceiling, the government imposed a price floor of $2,000 per month for apartments. What is the quantity of apartments demanded at the new price? A) 0 B) 200 C) 300 D) 500

Q: Figure 4-5 Figure 4-5 shows the market for apartments in Springfield. Recently, the government imposed a rent ceiling of $1,000 per month. Refer to Figure 4-5. What is the value of the deadweight loss after the imposition of the ceiling? A) $50,000 B) $125,000 C) $175,000 D) $260,000

Q: Figure 4-5 Figure 4-5 shows the market for apartments in Springfield. Recently, the government imposed a rent ceiling of $1,000 per month. Refer to Figure 4-5. What is the value of the portion of producer surplus transferred to consumers as a result of the rent ceiling? A) $40,000 B) $100,000 C) $125,000 D) $140,000

Q: Figure 4-5 Figure 4-5 shows the market for apartments in Springfield. Recently, the government imposed a rent ceiling of $1,000 per month. Refer to Figure 4-5. What is the value of producer surplus after the imposition of the ceiling? A) $40,000 B) $100,000 C) $300,000 D) $430,000

Q: Figure 4-5 Figure 4-5 shows the market for apartments in Springfield. Recently, the government imposed a rent ceiling of $1,000 per month. Refer to Figure 4-5. What is the value of consumer surplus after the imposition of the ceiling? A) $120,000 B) $230,000 C) $270,000 D) $430,000

Q: Figure 4-5 Figure 4-5 shows the market for apartments in Springfield. Recently, the government imposed a rent ceiling of $1,000 per month. Refer to Figure 4-5. With rent control, the quantity supplied is 200 apartments. Suppose apartment owners ignore the law and rent this quantity for the highest rent they can get. What is the highest rent they can get per month? A) $1,000 B) $1,500 C) $2,000 D) $2,300

Q: Economists refer a to a market where buying and selling take place at prices that violate government price regulations as A) a black market. B) an outlaw market. C) a noncompetitive market. D) a restricted market.

Q: Government intervention in agricultural markets in the U.S. began in the A) 1920s. B) 1930s. C) 1950s. D) 1970s.

Q: To affect the market outcome, a price ceiling A) must be set below the black market price. B) must be set below the legal price. C) must be set below the price floor. D) must be set below the equilibrium price.

Q: Rent control is an example of A) a subsidy for low-skilled workers. B) a price floor. C) a price ceiling. D) a black market.

Q: Which of the following isnot a consequence of minimum wage laws? A) Low skilled workers are hurt because minimum wage reduces the number of jobs providing low skilled workers with training. B) Employers will be reluctant to offer low-skill workers jobs with training. C) Producers have an incentive to offer workers non-wage benefits such as health care benefits and convenient working hours rather than a higher wage. D) Some workers benefit when the minimum wage is increased.

Q: Table 4-4Hourly Wage (dollars)Quantity of Labor SuppliedQuantity of Labor Demanded$7.50530,000650,0008.50550,000630,0009.50570,000610,00010.50590,000590,00011.50610,000570,00012.50630,000550,000Table 4-4 shows the demand and supply schedules for labor market in the city of Pixley.Refer to Table 4-4. Suppose that the quantity of labor supplied decreases by 80,000 at each wage level. What are the new free market equilibrium hourly wage and the new equilibrium quantity of labor?A) W = $8.50; Q = 550,000B) W = $12.50; Q = 550,000C) W = $8.50; Q = 630,000D) W = $11.50; Q = 610,000

Q: Table 4-4Hourly Wage (dollars)Quantity of Labor SuppliedQuantity of Labor Demanded$7.50530,000650,0008.50550,000630,0009.50570,000610,00010.50590,000590,00011.50610,000570,00012.50630,000550,000Table 4-4 shows the demand and supply schedules for labor market in the city of Pixley.Refer to Table 4-4. Suppose that the quantity of labor supplied increases by 40,000 at each wage level. What are the new free market equilibrium hourly wage and the new equilibrium quantity of labor?A) W = $8.50; Q = 550,000B) W = $12.50; Q = 630,000C) W = $9.50; Q = 610,000D) W = $11.50; Q = 610,000

Q: Table 4-4Hourly Wage (dollars)Quantity of Labor SuppliedQuantity of Labor Demanded$7.50530,000650,0008.50550,000630,0009.50570,000610,00010.50590,000590,00011.50610,000570,00012.50630,000550,000Table 4-4 shows the demand and supply schedules for labor market in the city of Pixley.Refer to Table 4-4. Suppose that the quantity of labor demanded increases by 40,000 at each wage level. What are the new free market equilibrium hourly wage and the new equilibrium quantity of labor?A) W = $8.50; Q = 550,000B) W = $12.50; Q = 630,000C) W = $9.50; Q = 570,000D) W = $11.50; Q = 610,000

Q: Table 4-4Hourly Wage (dollars)Quantity of Labor SuppliedQuantity of Labor Demanded$7.50530,000650,0008.50550,000630,0009.50570,000610,00010.50590,000590,00011.50610,000570,00012.50630,000550,000Table 4-4 shows the demand and supply schedules for labor market in the city of Pixley.Refer to Table 4-4. Suppose that the quantity of labor demanded decreases by 80,000 at each wage level. What are the new free market equilibrium hourly wage and the new equilibrium quantity of labor?A) W = $8.50; Q = 550,000B) W = $12.50; Q = 630,000C) W = $9.50; Q = 570,000D) W = $9.50; Q = 590,000

Q: Table 4-4Hourly Wage (dollars)Quantity of Labor SuppliedQuantity of Labor Demanded$7.50530,000650,0008.50550,000630,0009.50570,000610,00010.50590,000590,00011.50610,000570,00012.50630,000550,000Table 4-4 shows the demand and supply schedules for labor market in the city of Pixley.Refer to Table 4-4. If a minimum wage of $12.50 is mandated there will be aA) shortage of 40,000 units of labor.B) surplus of 40,000 units of labor.C) shortage of 80,000 units of labor.D) surplus of 80,000 units of labor.

Q: Table 4-4Hourly Wage (dollars)Quantity of Labor SuppliedQuantity of Labor Demanded$7.50530,000650,0008.50550,000630,0009.50570,000610,00010.50590,000590,00011.50610,000570,00012.50630,000550,000Table 4-4 shows the demand and supply schedules for labor market in the city of Pixley.Refer to Table 4-4. If a minimum wage of $12.50 an hour is mandated, what is the quantity of labor supplied?A) 80,000B) 550,000C) 630,000D) 1,180,000

Q: Table 4-4Hourly Wage (dollars)Quantity of Labor SuppliedQuantity of Labor Demanded$7.50530,000650,0008.50550,000630,0009.50570,000610,00010.50590,000590,00011.50610,000570,00012.50630,000550,000Table 4-4 shows the demand and supply schedules for labor market in the city of Pixley.Refer to Table 4-4. If a minimum wage of $12.50 an hour is mandated, what is the quantity of labor demanded?A) 80,000B) 550,000C) 630,000D) 1,180,000

Q: Table 4-4Hourly Wage (dollars)Quantity of Labor SuppliedQuantity of Labor Demanded$7.50530,000650,0008.50550,000630,0009.50570,000610,00010.50590,000590,00011.50610,000570,00012.50630,000550,000Table 4-4 shows the demand and supply schedules for labor market in the city of Pixley.Refer to Table 4-4. If a minimum wage of $11.50 is mandated there will be aA) shortage of 20,000 units of labor.B) surplus of 20,000 units of labor.C) shortage of 40,000 units of labor.D) surplus of 40,000 units of labor.

Q: Table 4-4Hourly Wage (dollars)Quantity of Labor SuppliedQuantity of Labor Demanded$7.50530,000650,0008.50550,000630,0009.50570,000610,00010.50590,000590,00011.50610,000570,00012.50630,000550,000Table 4-4 shows the demand and supply schedules for labor market in the city of Pixley.Refer to Table 4-4. If a minimum wage of $11.50 an hour is mandated, what is the quantity of labor supplied?A) 40,000B) 570,000C) 610,000D) 1,180,000

Q: Table 4-4Hourly Wage (dollars)Quantity of Labor SuppliedQuantity of Labor Demanded$7.50530,000650,0008.50550,000630,0009.50570,000610,00010.50590,000590,00011.50610,000570,00012.50630,000550,000Table 4-4 shows the demand and supply schedules for labor market in the city of Pixley.Refer to Table 4-4. If a minimum wage of $11.50 an hour is mandated, what is the quantity of labor demanded?A) 40,000B) 570,000C) 610,000D) 1,180,000

Q: Table 4-4Hourly Wage (dollars)Quantity of Labor SuppliedQuantity of Labor Demanded$7.50530,000650,0008.50550,000630,0009.50570,000610,00010.50590,000590,00011.50610,000570,00012.50630,000550,000Table 4-4 shows the demand and supply schedules for labor market in the city of Pixley.Refer to Table 4-4. What is the equilibrium hourly wage (W*) and the equilibrium quantity of labor (Q*)?A) W* = $10.50; Q* = 590,000B) W* = $11.50; Q* = 570,000C) W* = $9.50; Q* = 570,000D) W* = $10.50; Q* = 1,200,000