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Wage rate (dollars per hour) 25.00- The graph shows the market for dog groomers

ID: 1111521 • Letter: W

Question

Wage rate (dollars per hour) 25.00- The graph shows the market for dog groomers organized by the Dog Groomers' Union in Toledo, Ohio. What is the wage rate that dog groomers sarn and how many dog groomers are employed? The wage rate that dog groomers earn is $1 an hour and the number of dog groomers employed is I. When the Dog Groomers' Union sets the minimum wage for dog groomers at $17.50 an hour, U dog groomers are employed and they earn $ an hour. * 8 + 8 The number of dog groomers unemployed is. N N T R 8 N "125 5075 10o 125 150 175 200 Quantity (dog groomers) Enter your answer in each of the answer boxes.

Explanation / Answer

Answer

The equilibrium is at D=S

where

dog growers=100

the wage of dog growers =$15

if the Union set the minimum wage of $17.5

dog growers demanded=75 and supplied=125

the employed=demanded=75 and earn $17.5 and unemplyed=supplied-demanded=125-75=50