Draw a labor market for un-skilled labor assuming demand is perfectly inelastic. 8b. Insert a minimum wage above the equilibrium wage into the market and illustrate the new wage and new level of employment. 8c. If the number of un-skilled workers rises after a minimum wage is implemented, use economic analysis and derived demand to explain this effect in the labor market.
Draw a labor market for un-skilled labor assuming demand is perfectly inelastic. 8b. Insert a minimum wage above the equilibrium wage into the market and illustrate the new wage and new level of employment. 8c. If the number of un-skilled workers rises after a minimum wage is implemented, use economic analysis and derived demand to explain this effect in the labor market.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Draw a labor market for un-skilled labor assuming demand is perfectly inelastic.
8b. Insert a minimum wage above the equilibrium wage into the market and illustrate the new
wage and new level of employment.
8c. If the number of un-skilled workers rises after a minimum wage is implemented, use
economic analysis and derived demand to explain this effect in the labor market.
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