4. Suppose the minimum wage is raised from $7.25 per hour to $15.00 per hour (as has been proposed by activists and politicians across the USA over the last couple of years). In different competitive industries that rely on unskilled labor (where a substantial portion of the workforce is paid the minimum wage) what about these firms or markets would you most want to know to be able to predict the effect on unskilled employment in each industry in the long run? Use any graphs you need to in your explanation. (hint: there are two different elasticities that likely play important roles).

4. Suppose the minimum wage is raised from $7.25 per hour to $15.00 per hour (as has been proposed by activists and politicians across the USA over the last couple of years). In different competitive industries that rely on unskilled labor (where a substantial portion of the workforce is paid the minimum wage) what about these firms or markets would you most want to know to be able to predict the effect on unskilled employment in each industry in the long run? Use any graphs you need to in your explanation. (hint: there are two different elasticities that likely play important roles).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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