Question

Below is data about the labor market in the state of Northwoods. Wage Quantity Demanded Quantity Supplied $10 80,000 120,000 $9 90,000 110,000 $8 100,000 100,000 $7 110,000 90,000 $6 120,000 80,000
If the state government imposed a minimum wage of $9, how many people would be unemployed?

Answer 1

Answer:

So the number of people who would be unemployed is 111111.

Step-by-step explanation:

We calculate the total number of people and how much money they will need:

$200000\cdot 10\ =2000000\ \\\\200000\cdot 9\ =1800000\ \\\\200000\cdot 8\ =1600000\ \\\\200000\cdot 7\ =1400000\ \\\\200000\cdot 6\ =1200000$

So the total number of people receiving a salary is 1000000.

A total of $ 8000000 is required for their salaries.

If the minimum wage is $ 9, we get:

$8000000:9=888888.8\\\\\\1000000-888888.8=111111.2$

So the number of people who would be unemployed is 111111.