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2. Plotting the supply of labor In Detroit, 120 people are willing to work an hour as cashiers if the wage is $20 per hour. For each additional $5 that the wage rises above $20, an additional 30 people are willing to work an hour.

2. Plotting the supply of labor In Detroit, 120 people are willing to work an hour as cashiers if the wage is $20 per hour. For each additional $5 that the wage rises above $20, an additional 30 people are willing to work an hour.

Economics:
Economics:
10th Edition
ISBN:9781285859460
Author:BOYES, William
Publisher:BOYES, William
Chapter30: The Labor Market
Section: Chapter Questions
Problem 14E
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2. Plotting the supply of labor In Detroit, 120 people are willing to work an hour as cashiers if the wage is $20 per hour. For each additional $5 that the wage rises above $20, an additional 30 people are willing to work an hour. For wages of $20, $25, $30, $35, and $40 per hour, plot the daily labor supply curve for cashiers on the following graph. WAGE RATE (Dollars per hour) 50 45 40 35 30 25 20 15 10 5 0 D 30 60 90 120 150 180 210 240 270 QUANTITY OF LABOR (Number of workers) 300 What is one explanation for why this labor supply curve is upward sloping? O Wages have to increase to accommodate union pressure. Firms are willing to hire more cashiers at a lower wage. O The opportunity cost of leisure increases as wages increase. O Unemployment benefits are steadily declining. Supply
Transcribed Image Text:2. Plotting the supply of labor In Detroit, 120 people are willing to work an hour as cashiers if the wage is $20 per hour. For each additional $5 that the wage rises above $20, an additional 30 people are willing to work an hour. For wages of $20, $25, $30, $35, and $40 per hour, plot the daily labor supply curve for cashiers on the following graph. WAGE RATE (Dollars per hour) 50 45 40 35 30 25 20 15 10 5 0 D 30 60 90 120 150 180 210 240 270 QUANTITY OF LABOR (Number of workers) 300 What is one explanation for why this labor supply curve is upward sloping? O Wages have to increase to accommodate union pressure. Firms are willing to hire more cashiers at a lower wage. O The opportunity cost of leisure increases as wages increase. O Unemployment benefits are steadily declining. Supply
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