ESSENTIALS OF ECONOMICS
ESSENTIALS OF ECONOMICS
4th Edition
ISBN: 9781464188466
Author: KRUGMAN
Publisher: Norton, W. W. & Company, Inc.
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Chapter 4, Problem 7P
To determine


  1. Equilibrium wage and number of graduates hired per year.
  2. Involuntary unemployment at a minimum yearly wage is set.
  3. Relationship between the level of involuntary unemployment and the level of minimum wage.
  4. Concept Introduction

    Price Floor: When the government fixes the minimum price of a good or service, it is known as price floor. Price floor is fixed by the government to protect the price from going too low.

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