Suppose the demand for unskilled labor were completely inelastic with respect to the wage rate. Using graphs
Question:
Suppose the demand for unskilled labor were completely inelastic with respect to the wage rate. Using graphs similar to those in Figure, but modified to reflect this new assumption, explain how a minimum wage above the equilibrium wage for covered unskilled workers would affect employment and the wage rate among:
a. Covered, unskilled workers
b. Uncovered, unskilled workers
c. Skilledworkers
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a Suppose that the equilibrium wage is 4 per hour If a minimum wage of 8 per hour is implemented the...View the full answer
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Related Book For 
Macroeconomics Principles and Applications
ISBN: 978-1133265238
5th edition
Authors: Robert e. hall, marc Lieberman
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