ECON111 : Microeconomics - Fair Work Commission’s - Microeconomics Assignment Help

Internal Code : 1AJEDI

Microeconomics Assignment Help

TASK From the perspective of economic theory, what is a minimum wage and when is it binding? According to the Fair Work Commission’s National Minimum Wage Order for 2018 (available onit’s website), what is the national minimum wage per hour in Australia for an adult worker?The following information will be used for the remaining 10 questions.Assume that the market for unskilled labour in Australia is a competitive market and can be described by the Following demand and supply curves: D = 1,500,000 – 60,000W S = 120,000W – 1,200,000 Where W = wage rate per hour for labour, D is hours of labour demanded and S is hours of labour supplied.   Calculate the equilibrium wage rate and quantity of unskilled labour employed. Draw a diagramto illustrate your answer. Show on your diagram and calculate the size of the: (i) Consumer/firm surplus (ii) Producer/worker surplus (iii) Total Surplus Suppose that the Fair Work Commission imposes a minimum wage of $19 per hour. (i) How many hours of employment are exchanged in the market? (ii) Calculate the size of the surplus or shortage of hours created by the imposition of the minimum wage.