D = 1,500,000 - 60,000W S = 120,000W - 1,200,000 Q 4. Show on your diagram and calculate the size of the: (i) Consumer/firm surplus (ii)...

D = 1,500,000 - 60,000W S = 120,000W - 1,200,000

Q 4. Show on your diagram and calculate the size of the:

(i) Consumer/firm surplus

(ii) Producer/worker surplus

(iii) Total Surplus

Q5. 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.