8. A case study in this chapter discusses the fed- eral minimum-wage a. Suppose the minimum wage is above the equilibrium wage in the market for unskilled labor. Using a supply- and-demand diagram of the market for unskilled labor, show the market wage, the number of workers who are employed, and the number of workers who are unem- law. ployed. Also show the total wage pay- ments to unskilled workers. the secretary of labor proposes b. Now an increase in the minimum What effect would this increase have on employ- ment? Does the change in employment depend on the elasticity of demand, the elas- ticity of supply, both elasticities, or neither? suppose wage.
8. A case study in this chapter discusses the fed- eral minimum-wage a. Suppose the minimum wage is above the equilibrium wage in the market for unskilled labor. Using a supply- and-demand diagram of the market for unskilled labor, show the market wage, the number of workers who are employed, and the number of workers who are unem- law. ployed. Also show the total wage pay- ments to unskilled workers. the secretary of labor proposes b. Now an increase in the minimum What effect would this increase have on employ- ment? Does the change in employment depend on the elasticity of demand, the elas- ticity of supply, both elasticities, or neither? suppose wage.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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please help me answer this question 5 part A&B
Transcribed Image Text:8. A case study in this chapter discusses the fed-
eral minimum-wage law.
a. Suppose the minimum wage is above
the equilibrium wage in the market
for unskilled labor. Using a supply-
and-demand diagram of the market for
unskilled labor, show the market wage,
the number of workers who are employed,
1
and the number of workers who are unem-
ployed. Also show the total wage pay-
ments to unskilled workers.
b. Now suppose the secretary of labor proposes
an increase in the minimum wage. What
effect would this increase have on employ-
ment? Does the change in employment
depend on the elasticity of demand, the elas-
ticity of supply, both elasticities, or neither?
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