Question: How do I draw the graphs and discuss? mm _ Read the following extract carefully and answer the question that follows. [20 marks] DOMESTIC workers

How do I draw the graphs and discuss?

How do I draw the graphs and discuss? mm _ Read the

mm _ Read the following extract carefully and answer the question that follows. [20 marks] DOMESTIC workers will no longer be subjected to meagre salaries as the government has adjusted the minimum wage for domestic workers. with effect from December last year. The announcement was made by the Department of Labour Minister Mildred Dliphant and it coincided with the signing into law of the National Minimum Wage Bill by President Cyril Ramaphosa. According to the Department of Labour's new rates. domestic workers wanting in Area A (bigger metropolitan areas) who work more than 2? ordinary hours per week. must be paid a minimum of R13.69 per hou. Workers who work fewer than 2? hours per week, must be paid a minimum of R1633 per hour. This will mean that a domestic worker who works 45 hours per week will now earn a minimum of R2 669.24 a month. Gardeners. dn'vers or people who look after children. the aged. sick. frail or disabled in a private household, all qualify as domestic workers. Source: httgsdhmrwnewszti.comiSou'iNricaiLocaliStanger-Weeklyfsa-domestic-workers-to- get-higher-minimum-wege-Zm 90109-2 Accessed Zdiosl'zo'ls With the aid of a diagram. discuss the welfare effect of this new legislation if the new minimum wage is (1) below the equilibrium wage and [2) above the equilibrium wage rate with labour hours as your quantity variable

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!