Please discuss in detail The government bets a minimumwage above the Current eauilibriumwase level.effect does it havein labor market(4) whaton equillibrium(in term a wage level and theemploy ment level)?(2) what effect does it have on Consumerburplus, Producer Surplus, tolal surplus?andHint: in labor maket,are Pracducersand omployers are' Consumers' PlotHing agraph may help in answering question?

In the labor market, the equilibrium wage and quantity of labor is determined by the forces of…

The government sets a minimum wage above the Current eajuilibrium wase level. (4) what effect does it have in labor market on equillibrium (in term a woage level and he employ ment level)? (2) what effect does it have on Consumer and burplus, Producer Surplus, tolal Surplus? Hint: in labor maket , workers are Praducers and omployers graph may help in answering queestion: are' Consumers' ploting

The government sets a minimum wage above the Current eajuilibrium wase level. (4) what effect does it have in labor market on equillibrium (in term a woage level and he employ ment level)? (2) what effect does it have on Consumer and burplus, Producer Surplus, tolal Surplus? Hint: in labor maket , workers are Praducers and omployers graph may help in answering queestion: are' Consumers' ploting

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter21: Unemployment

Section: Chapter Questions

Problem 46P: A government passes a family-friendly law that no companies can have evening, nighttime, or weekend...

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KINDLY ANSWER quetion "d" 5) (KEY QUESTION) Minimum Wages and Unionsa. Assume an industry without legal minimum wages and unions. Show in a diagram how the equilibriumwage W* is determined, and briefly explain all the concepts in the diagram.b. Now suppose a minimum wage, WMIN, is legislated at a level lower than W*, i.e. WMIN<W*. Show it in thediagram and explain whether the labour market outcomes in part a. change, and how.c. Now suppose a minimum wage is legislated at a level higher than W*, i.e. WMIN>W*. Show it in thediagram and explain what the labour market outcomes will be.d. Now suppose a workers’ union is created and successfully negotiates wage WUNION, which is above bothW* and WMIN, i.e. WUNION>WMIN>W*. Explain what the labour market outcomes will be compared to theprevious part
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