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.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter6: Supply, Demand And Government Policies
Section: Chapter Questions
Problem 8PA
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