Using a diagram of the labor market, show the effectof an increase in the minimum wage on the wagepaid to workers, the number of workers supplied, thenumber of workers demanded, and the amount ofunemployment

Using a diagram of the labor market, show the effectof an increase in the minimum wage on the wagepaid to workers, the number of workers supplied, thenumber of workers demanded, and the amount ofunemployment

Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781305971509

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter15: Unemployment

Section: Chapter Questions

Problem 4CQQ

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Using a diagram of the labor market, show the effect
of an increase in the minimum wage on the wage
paid to workers, the number of workers supplied, the
number of workers demanded, and the amount of
unemployment

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Illustrate and explain the impact of a minium wage on the labour market
Use a graph of labor supply and labor demand to illustrate the impact of each of the folllwing events on the equilibrium wage rate and the equilibrium level of employment in a labor market. (Analyze these as two separate unrelated events). Be sure to label your graph clearly to show the direction of the shift as well as an initial equilibrium and the new equilibrium after the event. A. A decline in the productivity of this type of labor B. An increase in the preference for work versus leisure.
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You have the following wage band Housekeeper $ 11-12 The band is increased by 5% What are the new wage rates for the following: Housekeeper A 11.10 Housekeeper B 11.45 Housekeeper C 11.80 New Wage Rate = (Old Wage Rate X Raise %) + Old Wage Rate