What happens to employment and wages in that sector?

is Show more Assume that the demand for short-order cooks at diners in a small town is ED=400 16 w where E is the number of short-order cooks and w is the hourly wage rate. The market clearing wage is $8 but the towns City Council imposes a living wage of $10. a) Does the living wage ordinance affect employment in diners? Draw a graph depicting what has transpired in the diner sector. b) The small town in question has an uncovered sector (not subject to the living wage) in which ES=208+60w and ED=40016w before the living wage ordinance goes into effect.Assume that the short order cooks who lose their jobs due to the living wage ordinance seek employment in the uncovered sector. What happens to employment and wages in that sector? Draw a graph depicting events in the uncovered sector. Show less

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