the table below gives the supply and demand for teanage labor in a small town.
Wages($per hr.) Labour supplied( hours per week) Labor demanded(hours perweek) 
5.00            500                              100
4.00            400                              200
3.00            300                              300
2.00            200                              400
A) What is the equilibrium wage?
b) Suppose the town council sets a mimimum wage of $4.00 per hour.
What would be the teenage unemployment( measured in hours)?
c) suppose now that a new fast food restaurant opens in town, and
increases the demand for teenage labor by 400 hours per week. What
will be the effects on :
1) The minimum wage rate;
2) Teenage employment;
3) Teenage employment.

Please show details of how the answers were arrived.

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Clarification of Question by 2321-ga on 06 Sep 2004 16:17 PDT

Question 3 should read " Teenage unemployment"

See http://www.oswego.edu/~economic/eco350/chap2.htm

A. 3.00 (Labor supplied = Labor Demanded)
B. 200 hours (Amount of Labor Supplied @ 4$/hr - Amount of Labor
Demanded @ 4$/hr)
C. The demand curve shifts upward 400 hours...so there is a new
equilibrium.  That new equilibrium is at 5$/hr. (New restraunt
employment demand = 400 + City demand of 100 = 500 demanded hours, and
at 5$ an hour 500 hours are supplied)
1.) Minimum wage is set by the city so it will not change.  But the
new demand will make it irrelevant because the new restraunt creates
enough demand for labor that even if it was the only employer the wage
would have to be $4 to attract enough labor from the teenagers.
2.)Teenage employment will be 500 (teenagers supply 500 hours because
the wage is higher)

I hope this helps.  It has been a while since my last economics class,
but $40 is too high for this question.  Of course I am not paid anyway
because this is just a comment.