for each of the wages listed in the following table, determine the quantity of labor demanded, the quantity…

for each of the wages listed in the following table, determine the quantity of labor demanded, the quantity of labor supplied, and the direction of pressure exerted on wages in the absence of any price controls.\nwage (dollars per hour) labor demanded (thousands of workers) labor supplied (thousands of workers) surplus or shortage of labor pressure on wages\n8 675 414 shortage upward\n12 225 486 surplus downward\ntrue or false: a minimum wage below $10 per hour is not a binding minimum wage in this market. (hint: economists call a minimum wage that prevents the labor market from reaching equilibrium a binding minimum wage.)\ntrue\nfalse

for each of the wages listed in the following table, determine the quantity of labor demanded, the quantity of labor supplied, and the direction of pressure exerted on wages in the absence of any price controls.\nwage (dollars per hour) labor demanded (thousands of workers) labor supplied (thousands of workers) surplus or shortage of labor pressure on wages\n8 675 414 shortage upward\n12 225 486 surplus downward\ntrue or false: a minimum wage below $10 per hour is not a binding minimum wage in this market. (hint: economists call a minimum wage that prevents the labor market from reaching equilibrium a binding minimum wage.)\ntrue\nfalse

Answer

Explanation:

Step1: Analyze labor - market equilibrium concept

A non - binding minimum wage is below the equilibrium wage. When wage is $8$, labor demanded (675 thousand) > labor supplied (414 thousand), so there is a shortage and upward pressure on wages. When wage is $12$, labor demanded (225 thousand) < labor supplied (486 thousand), so there is a surplus and downward pressure on wages. So, the equilibrium wage is between $8$ and $12$.

Step2: Evaluate the minimum - wage statement

Since a minimum wage below the equilibrium wage does not prevent the labor market from reaching equilibrium, a minimum wage below $10$ (which is between $8$ and $12$) is not a binding minimum wage.

Answer:

True