What would be the impact of a minimum wage that is set below the equilibrium wage that would otherwise prevail in the labor market?
What will be an ideal response?
This would have no impact on the labor market. The reason is that the market is already paying workers above what the minimum wage requires. The only way for a minimum wage to have any practical effect on the labor market is for it to be set above the equilibrium wage rate.
Economics
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Suppose the government cracks down on illegal immigration. How will this affect the demand and supply of labor
What will be an ideal response?
Economics
Refer to Figure 4-1. If the market price is $1.00, what is the consumer surplus on the third burrito?
A) $0.50 B) $1.00 C) $1.50 D) $7.50
Economics