The graph below provides a supply and demand curve for food servers, complete 1a – 1d using the graph.   1.a.  The equilibrium wage and the number of food servers employed per day, respectively, are: 1.b.  Suppose that in the interest of boosting incomes of the working poor, Congress imposes a minimum wage of $6.00 per hour. This minimum wage rate creates a(n): 1.c.  Assume that both input and output markets are perfectly competitive. If one additional

Economics:
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Author:BOYES, William
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Chapter22: Supply: The Costs Of Doing Business
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The graph below provides a supply and demand curve for food servers, complete 1a – 1d using the graph.  

1.a.  The equilibrium wage and the number of food servers employed per day, respectively, are:

1.b.  Suppose that in the interest of boosting incomes of the working poor, Congress imposes a minimum wage of $6.00 per hour. This minimum wage rate creates a(n):

1.c.  Assume that both input and output markets are perfectly competitive. If one additional server increases the number of meals sold by four per day and each meal sells for $10, each additional food servers will be paid:

1.d.  If the equilibrium wage rate increased, the cause could be that either:

8.00
Wage rate 6.00
(dollars
per day)
4.00
2.00
0
5
S
10 15 20 25
Quantity of labor
(thousands of servers per day)
Transcribed Image Text:8.00 Wage rate 6.00 (dollars per day) 4.00 2.00 0 5 S 10 15 20 25 Quantity of labor (thousands of servers per day)
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