If the minimum wage raises the market wage, w, but hours worked, L, fall as a result,

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If the minimum wage raises the market wage, w, but hours worked, L, fall as a result, total wage payments, wL, may rise or fall. Use supply and demand curves to show that either outcome is possible depending on the shapes (slopes) of the supply and demand curves.

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Managerial Economics and Strategy

ISBN: 978-0321566447

1st edition

Authors: Jeffrey M. Perloff, James A. Brander

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