Suppose that Congress passes a law requiring employers to provide employees some benefit (such as healthcare) that raises the cost of an employee by $4 per hour. Assume that firms were not providing such benefits prior to the legislation. On the following graph, use the green line (triangle symbol) to show the effect this employer mandate has on the demand for labor. New DemandNew SupplyEquilibrium Before LawEquilibrium After Law01234567891020181614121086420Wage (Dollars per hour)Quantity of Labor (Thousands)DemandSupply5, 6 Suppose employees place a value on this benefit exactly equal to its cost. On the preceding graph, use the purple line (diamond symbol) to show the effect this employer mandate has on the supply of labor. Suppose the wage is free to balance supply and demand. Use the black point (plus symbol) to indicate the equilibrium wage and level of employment before this law, and use the grey point (star symbol) to indicate the equilibrium wage and level of employment after this law is implemented. True or False: Employers are made worse off but employees are made better off by this law _________ (Give answer True or False) Suppose that, before the mandate, the wage in this market was $3 above the minimum wage. In this case, the wage rate with the employer mandate will be $_____ per hour, which will lead to a _________ (decrease/no changes/increase) in the level of employment and ________ (decrease/no changes/increase) in the level of unemployment. Now suppose that workers do not value the mandate Which of the following statements are true under this circumstance? Check all that apply. (Select all the possible answers) A) Employees are worse off than before the mandated benefit. B) Employers are neither better nor worse off than before the mandated benefit. C)The equilibrium quantity of labor will remain unchanged. D) The supply curve of labor shifts to the left. E) The wage rate will decline by less than $4. Note:- Everything written in bold handwriting is the option for the question. So please give all the correct answers to this problem. Also, give the answer for graph (in the image).

Suppose that Congress passes a law requiring employers to provide employees some benefit (such as healthcare) that raises the cost of an employee by $4 per hour. Assume that firms were not providing such benefits prior to the legislation. On the following graph, use the green line (triangle symbol) to show the effect this employer mandate has on the demand for labor. New DemandNew SupplyEquilibrium Before LawEquilibrium After Law01234567891020181614121086420Wage (Dollars per hour)Quantity of Labor (Thousands)DemandSupply5, 6 Suppose employees place a value on this benefit exactly equal to its cost. On the preceding graph, use the purple line (diamond symbol) to show the effect this employer mandate has on the supply of labor. Suppose the wage is free to balance supply and demand. Use the black point (plus symbol) to indicate the equilibrium wage and level of employment before this law, and use the grey point (star symbol) to indicate the equilibrium wage and level of employment after this law is implemented. True or False: Employers are made worse off but employees are made better off by this law _______ (Give answer True or False) Suppose that, before the mandate, the wage in this market was $3 above the minimum wage. In this case, the wage rate with the employer mandate will be $_ per hour, which will lead to a _ (decrease/no changes/increase) in the level of employment and __ (decrease/no changes/increase) in the level of unemployment. Now suppose that workers do not value the mandate Which of the following statements are true under this circumstance? Check all that apply. (Select all the possible answers) A) Employees are worse off than before the mandated benefit. B) Employers are neither better nor worse off than before the mandated benefit. C)The equilibrium quantity of labor will remain unchanged. D) The supply curve of labor shifts to the left. E) The wage rate will decline by less than $4. Note:- Everything written in bold handwriting is the option for the question. So please give all the correct answers to this problem. Also, give the answer for graph (in the image).

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter4: Labor And Financial Markets

Section: Chapter Questions

Problem 21CTQ: Other than the demand for labor, what would be another example of a 'derived demand?

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10. Problems and Applications Q10

On the following graph, use the green line (triangle symbol) to show the effect this employer mandate has on the demand for labor.

New DemandNew SupplyEquilibrium Before LawEquilibrium After Law01234567891020181614121086420Wage (Dollars per hour)Quantity of Labor (Thousands)DemandSupply5, 6

Suppose employees place a value on this benefit exactly equal to its cost.

On the preceding graph, use the purple line (diamond symbol) to show the effect this employer mandate has on the supply of labor.

Suppose the wage is free to balance supply and demand.

Use the black point (plus symbol) to indicate the equilibrium wage and level of employment before this law, and use the grey point (star symbol) to indicate the equilibrium wage and level of employment after this law is implemented.

True or False: Employers are made worse off but employees are made better off by this law _________ (Give answer True or False)

Suppose that, before the mandate, the wage in this market was $3 above the minimum wage.

In this case, the wage rate with the employer mandate will be $_____

per hour, which will lead to a _________ (decrease/no changes/increase) in the level of employment and ________ (decrease/no changes/increase) in the level of unemployment.

Now suppose that workers do not value the mandate

Which of the following statements are true under this circumstance?

Check all that apply. (Select all the possible answers)

A) Employees are worse off than before the mandated benefit.

B) Employers are neither better nor worse off than before the mandated benefit.

C)The equilibrium quantity of labor will remain unchanged.

D) The supply curve of labor shifts to the left.

E) The wage rate will decline by less than $4.

Note:- Everything written in bold handwriting is the option for the question. So please give all the correct answers to this problem. Also, give the answer for graph (in the image).

20
Demand
Supply
18
New Demand
16
14
12
New Supply
10
Equilibrium Before Law
4
Equilibrium After Law
2
0 1
2
3
4 5 6
7
8.
10
Quantity of Labor (Thousands)
Wage (Dollars per hour)

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