HEPPP Pleaseeeeee?

Question

Wage rate Labour supplied Labour demanded

£ (millions of hours) (Millions of hours)

7 60 30

6 50 40

5 40 50

4 30 60

3 20 70

What is the level of unemployment (in millions of hours ) if the minumimum wage is set at £6.00 an hour?

a= 40

b= 30

c= 20

d= 10

e= 0

.....................

?????????????????????

Answer 1

At 6.00 an hour there are 50 millions of labour hours supplied and only 40 millions of labour hours demanded.  50 - 40 = 10, so the level of unemployment is 10 millions of hours.  

Hope this helps you!

Answer 2

d= 10

Just check difference at this wage rate (50-40=10)