The three diagrams below show the supply and demand for teenage babysitters in one local area.The initial supply curve is S₀in all cases. FIGURE 14-3
-Refer to Figure 14-3.Suppose the teenage babysitters in one local area are earning an equilibrium wage of $6 per hour.Now suppose that the local government imposes a minimum wage of $8 per hour for babysitters.Which diagram illustrates the new supply curve (S_A) for babysitters?

Question

The three diagrams below show the supply and demand for teenage babysitters in one local area.The initial supply curve is S₀in all cases.

The three diagrams below show the supply and demand for teenage babysitters in one local area.The initial supply curve is S<sub>0 </sub>in all cases. FIGURE 14-3 -Refer to Figure 14-3.Suppose the teenage babysitters in one local area are earning an equilibrium wage of $6 per hour.Now suppose that the local government imposes a minimum wage of $8 per hour for babysitters.Which diagram illustrates the new supply curve (S<sub>A</sub>) for babysitters? A) diagram 1 B) diagram 2 C) diagram 3 D) none of the diagrams E) any of the diagrams

FIGURE 14-3
-Refer to Figure 14-3.Suppose the teenage babysitters in one local area are earning an equilibrium wage of $6 per hour.Now suppose that the local government imposes a minimum wage of $8 per hour for babysitters.Which diagram illustrates the new supply curve (S_A) for babysitters?

Quizplus · Accepted Answer

The new supply curve (S_A) for babysitters is illustrated in diagram 1. This is because the minimum wage of $8 per hour is above the equilibrium wage of $6 per hour, so the supply of babysitters will increase.

The Three Diagrams Below Show the Supply and Demand for Teenage