A study of the effects of the minimum wage on employment of low-skilled workers estimated the price elasticity of demand for low-skilled workers is -0.75
Suppose that the government is considering raising the minimum wage from $7.25 per hour to $7.75 per hour. Based on this information, calculate the percentage change in the employment of low skilled workers. Use the midpoint formula.
percent change in quantity demanded = -5 percent.
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The series of ups and downs the economy tends to move in is called
A) the business cycle. B) a recession. C) a depression. D) economic growth.
When the money market is drawn with the value of money on the vertical axis, the value of money decreases if
a. either money demand or money supply shifts right. b. either money demand or money supply shifts left. c. money demand shifts right or money supply shifts left. d. money demand shifts left or money supply shifts right.