Economists often will advocate anemployment subsidy instead of aminimum wage as a better solution toraising wages for low-skilled workers.(a) Using a generic supply and demandgraphical analysis, sketch out what themarket for low-skilled labor would looklike with a minimum wage (assume thatthe market equilibrium wage would be$12, and the legally-binding minimumwage is $15 dollars).(b) Again using a generic supply anddemand graphical analysis of the samemarket, illustrate and explain whatwould happen if instead of a minimumwage the government offered a $5 perworker per hour subsidy for firms to hirelow-skilled workers.(c) Comparing (a) to (b), why doeconomists prefer the subsidy? Explain

Here we are considering the market for the low skilled workers. Where the demand for the low skilled…

Economists often will advocate an employment subsidy instead of a minimum wage as a better solution to raising wages for low-skilled workers. (a) Using a generic supply and demand graphical analysis, sketch out what the market for low-skilled labor would look

Economists often will advocate an employment subsidy instead of a minimum wage as a better solution to raising wages for low-skilled workers. (a) Using a generic supply and demand graphical analysis, sketch out what the market for low-skilled labor would look

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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please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly
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