Question

he demand for labor is L​ = 4000minus​300w, where L is the number of workers demanded and w is the hourly wage rate. The supply of labor is L​ = 200w. The equilibrium wage rate in this market is ​$ 8​, and the equilibrium quantity of labor is 1600 workers. ​(Enter your responses as​ integers.) A minimum wage law is passed that sets the minimum wage at​ $9 per hour. As a​ result, 1300 workers are demanded and 1800 workers are​ supplied, so unemployment is 500workers. ​(Enter your responses as​ integers.) Do all workers benefit from the minimum wage​ law? No, because not everyone can find work at the higher wage. Which group of workers will have the least difficulty finding work at the minimum​ wage? A. Highly educated workers. Your answer is correct.B. Low skilled workers. C. Young and inexperienced workers. D. All of the above. The deadweight loss from the minimu

Answer 1

Please find the detailed answer as follows:

Step-by-step explanation:

The deadweight loss for the given information is = 1/2*2.5*300 = $375

The supply of labor of 1800 will have wage rate 1300 = 200*w

or w = 1300/200 = $6.5

Then the area of shaded portion in the figure or the deadweight loss will be 1/2*base(9-6.5) *altitude (1600-1300).