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Secure https://ng.cengage.com/static/nb/ui/evo/index.htmi?d tid-55725918810213036740736784973&eSBN-97813056500918nbid-86914 MINDTAP From Cengage Aplia Homework: Demand, Supply, and Markets The following graph shows the labor market in the fast-food industry in the fictional town of Supersize City. Use the graph input tool to help you answer the following questions. You wil Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey not be graded on any changes you make to this graph field will change accordingly. Graph Input Tool Market for Labor in the Fast Food Industry 20 T 18 Labor Demanded 900 Labor Supplied Supply 14 Demand 0 90 LBO 270 300 450 s40 039 729 0;

Explanation / Answer

Equilibruim Wage is $10 and Equilibrium Labour is 450

This price control is called price floor.

At price 12 supply is 675 and demand is 225 and there is a downward pressure on price

At price 8 supply is 225 and demand is 675 and there is upward pressure on price

Yes minimum wage above 10 is binding wage because at wage above 10 , the labour market is not in equilibrium i.e Supply is more than demand.

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