homework

1.What is the equilibrium wage rate and how many Starbucks workers are employed?

if California introduces a minimum wage of $14 an hour, how many Starbucks are employed and how many are unemployed?

2. Using the diagram below.

If California introduces a minimum wage of $18 an hour, how many Starbucks employee are employed and how many are unemployed?

what is the lowest wage that some employee might be able to earn if a black market develops?

3.Is the minimum wage of $18 an hour efficient? who gains and who losses from the minimum wage of $18 an hour? is it fair?

4.Calculate the Consumer Surplus using the diagram below

5.Calculate the Producer Surplus

6.Given a price ceiling of $400. Calculate the new consumer surplus

7.Given a Price ceiling of $400. what is the new producer surplus

8.Given a price ceiling of $400. what is the deadweight loss