Question: b- Draw a supply and demand model (SDM) to show the impact of minimum wage on wage, employment, and social surplus. No explanation is required.

b- Draw a supply and demand model (SDM) to show the impact of minimum wage on wage, employment, and social surplus. No

explanation is required. [5p]

c- Should we dismiss the minimum wage policy as a way to improve workers' surplus and earning on the ground that it causes unemployment? Why or why not?Draw a SDM and explain. [10p]

d- Assume that the labor market for less-skilled workers is characterized by a few big employers (e.g., Walmart or Amazon) who gain rent (have market power). Draw a SDM to show the impact of minimum wage on wage, employment, workers' earning and surplus. [10p]

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