please help me answer this question 5 part A&B 8. A case study in this chapter discusses the fed-eral minimum-wage law.a. Suppose the minimum wage is abovethe equilibrium wage in the marketfor unskilled labor. Using a supply-and-demand diagram of the market forunskilled labor, show the market wage,the number of workers who are employed,1and the number of workers who are unem-ployed. Also show the total wage pay-ments to unskilled workers.b. Now suppose the secretary of labor proposesan increase in the minimum wage. Whateffect would this increase have on employ-ment? Does the change in employmentdepend on the elasticity of demand, the elas-ticity of supply, both elasticities, or neither?

The lowest pay permitted by law is the most reduced compensation that businesses can legitimately…

Answered: 8. A case study in this chapter…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter6: Supply, Demand And Government Policies

Section: Chapter Questions

Problem 8PA

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