Suppose the graph depicts the labour market for retail associates in Regina.

a. What is the equilibrium wage for retail associates? How many associates are employed at the equilibrium wage and what is the unemployment rate?

b. The Saskatchewan government enacts a minimum wage of $14 per hour. How many associates are employed at

$14 per hour? Is there any unemployment?

c. Workers successfully lobby the provincial government, and the minimum wage is raised to $16 per hour. How many associates are employed at $16 per hour? Is there any unemployment? If so, are these workers frictionally, structurally, or cyclically unemployed?

Learning Objective 11.4 Learn about the economic and social costs of unemployment.