From time to time, Congress has raised the minimum wage. Some people suggested that a government subsidy could help employers finance the higher wage. This exercise examines the economics of a minimum wage and wage subsidies. Suppose the supply of low-skilled labor is given by Upper L Superscript Upper S Baseline equals 10 w where LS is the quantity of low-skilled labor (in millions of persons employed each year), and w is the wage rate (in dollars per hour). The demand for labor is given by Upper L Superscript Upper D Baseline equals 90 minus 10 w . What will be the free-market wage rate and employment level? Suppose the government sets a minimum wage of $5.50 per hour. How many people would then be employed? (Enter all responses rounded to two decimal places. ) The equilibrium wage is $4.5 . The equilibrium employment level is 45 million people per year. With a minimum wage of $5.50 , there would be 35 million people employed. Suppose that instead of a minimum wage, the government pays a subsidy of $1.25 per hour for each employee. What will the total level of employment be now? What will the equilibrium wage rate be? (Enter all responses rounded to two decimal places. ) With a subsidy of $1.25 , the total level of employment is million people per year, and the wage rate is $