Uncertain if what I have so far is correct and don’t know how to find the new total for workers Consider the labor market for the fast-food industry, which consists mainly of high school andcollege students. Assume that all fast-food restaurants are profit maximizing. The followingcalculator shows the market demand curve (blue curve) and market supply curve (orange curve)for student workers, who are responsible for making hamburgers.At any time in this problem, you can click the Reset to Initial Values button to return the elementsin the calculator to their original positions. You will not be graded on any changes to the calculator;it's just here to help you answer the following questions.Tool tip: You can directly change the values in the boxes with the white background by clicking inthe box and typing. The graph and any related values will change accordingly.WAGE RATE201816141210100 10 20 30 40 50 60 70 80 90 100JANTITY OF LABOR (Thousands of workers)Graph Input ToolLABOR MARKET CALCULATORWage rateLabordemanded(Thousandsof workers)Price of ahamburger(Dollars)14304Laborsupplied(Thousandsof workers)70When the price of a hamburger is $4, the equilibrium wage in the fast-food labor market is$10 per hour.Suppose that the demand for hamburgers increases enough so that the price of a hamburger risesto $8. Ordinarily, this would result in a new equilibrium employment level and wage in the labormarket for young people who work in fast-food restaurants.However, restaurants claim they can only afford to pay the initial equilibrium wage. In this labormarket, if the price of hamburgers increases, but restaurants continue to pay the equilibrium wagethat prevailed before the increase in demand for hamburgers, there will be a labor shortage ofworkers.

In economics, an equilibrium point refers to the state where supply and demand for a particular good…

Consider the labor market for the fast-food industry, which consists mainly of high school and college students. Assume that all fast-food restaurants are profit maximizing. The following calculator shows the market demand curve (blue curve) and market supply curve (orange curve) for student workers, who are responsible for making hamburgers. At any time in this problem, you can click the Reset to Initial Values button to return the elements in the calculator to their original positions. You will not be graded on any changes to the calculator; it's just here to help you answer the following questions. Tool tip: You can directly change the values in the boxes with the white background by clicking in the box and typing. The graph and any related values will change accordingly. WAGE RATE 20 18 16 14 12 10 8 6 X 0 10 20 30 40 50 60 JANTITY OF LABOR (Thousands of workers) 70 80 90 100 Graph Input Tool LABOR MARKET CALCULATOR Wage rate Labor demanded (Thousands of workers) Price of a hamburger (Dollars) 14 30 4 Labor supplied (Thousands of workers) 70 When the price of a hamburger is $4, the equilibrium wage in the fast-food labor market is $10 per hour. Suppose that the demand for hamburgers increases enough so that the price of a hamburger rises to $8 Ordinarily this would result in a pow.cquilibr

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Proudction Costs

Section: Chapter Questions

Problem 2SQP