O Macmillan Learning The memo mentions that opponents to a higher minimum wage usually cite the theoretical findings of a binding minimum wage in a standard supply and demand model of the labor market- that a binding minimum wage will lead to a surplus of labor, in other words, unemployment in the low skilled labor market. a. In the diagram, shift the wage line to capture the effect of a binding minimum wage. Wage ($ per hour) 4 2 20 18 16 14 12 10 8 6 0 ↑ 0 2 D 14 16 18 20 4 6 8 10 12 Number of workers employed in thousands. W S PS with no MW PS with MW

O Macmillan Learning The memo mentions that opponents to a higher minimum wage usually cite the theoretical findings of a binding minimum wage in a standard supply and demand model of the labor market- that a binding minimum wage will lead to a surplus of labor, in other words, unemployment in the low skilled labor market. a. In the diagram, shift the wage line to capture the effect of a binding minimum wage. Wage ($ per hour) 4 2 20 18 16 14 12 10 8 6 0 ↑ 0 2 D 14 16 18 20 4 6 8 10 12 Number of workers employed in thousands. W S PS with no MW PS with MW

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter4: Labor And Financial Markets

Section: Chapter Questions

Problem 23CTQ: Under what Circumstances would a minimum wage be a nonbinding price floor? Under what circumstances...

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Similar questions

What is die price commonly called in the labor market?
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