Answer to Question #107424 in Economics of Enterprise for Anthony

Question

how do i plot the below information in a diagram

question: aid of a diagram below the equilibrium wage and above the equilibrium wage rate with labour hours as per quantity variable;

According to the Department of Labour’s new rates, domestic workers working in Area A (bigger metropolitan areas) who work more than 27 ordinary hours per week, must be paid a minimum of R13,69 per hour.
Workers who work fewer than 27 hours per week, must be paid a minimum of R16,03 per hour.
This will mean that a domestic worker who works 45 hours per week will now earn a minimum of R2 669,24 a month.

Answer 1

The x-axis of the diaram should represent hours worked, and y-axis should represent the total sum paid per month.

We will get an upward-sloping curve, which will show the possible salary depending on hours worked. The equilibrium point will be R2 669,24 at 45 hours worked.