Assignment:
A minimum wage of $16 has just been established, having no previous min. wage. Calculate the new employment level, unemployment count, unemployment rate, new employer surplus, new worker surplus, and dead weight loss from the policy. Then, graph this new labor market equilibrium with everything fully labeled. Lastly, if the government wanted to provide jobs for all of those who wanted jobs at the new wage level ($16), how much would it cost them (think price support)?