in this market, the equilibrium hourly wage is $10, and the equilibrium quantity of labour is 450 workers…

in this market, the equilibrium hourly wage is $10, and the equilibrium quantity of labour is 450 workers. suppose a senator introduces a bill to legislate a minimum hourly wage of $6. this type of price control is called a price floor. for each of the wages listed in the following table, determine the quantity of labour demanded, the quantity of labour supplied, a pressure exerted on wages in the absence of any price controls.\n\n|wage (dollars per hour)|labour demanded (thousands of workers)|labour supplied (thousands of workers)|pressure on wages|\n|----|----|----|----|\n|8|675|225|\n|12|225|675|\n\ntrue or false: a minimum wage above $10 per hour is a binding minimum wage in this market.\n\n○ true\n○ false

in this market, the equilibrium hourly wage is $10, and the equilibrium quantity of labour is 450 workers. suppose a senator introduces a bill to legislate a minimum hourly wage of $6. this type of price control is called a price floor. for each of the wages listed in the following table, determine the quantity of labour demanded, the quantity of labour supplied, a pressure exerted on wages in the absence of any price controls.\n\n|wage (dollars per hour)|labour demanded (thousands of workers)|labour supplied (thousands of workers)|pressure on wages|\n|----|----|----|----|\n|8|675|225|\n|12|225|675|\n\ntrue or false: a minimum wage above $10 per hour is a binding minimum wage in this market.\n\n○ true\n○ false

Answer

Explanation:

Step1: Define binding minimum wage

A binding minimum - wage is one set above the equilibrium wage.

Step2: Identify equilibrium wage

The equilibrium hourly wage in this market is $10.

Step3: Analyze the statement

If a minimum wage is set above $10, it will affect the market as it is above the equilibrium level. So, it is a binding minimum wage.

Answer:

True