4.7 The government sets a minimum wage above the current equilibrium wage. What effect does the minimum

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4.7 The government sets a minimum wage above the current equilibrium wage. What effect does the minimum wage have on the market equilibrium?

What are its effects on consumer surplus, producer surplus, and total surplus? Who are the consumers and who are the producers? (Hint: See Q&A 8.5.)

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Managerial Economics And Strategy

ISBN: 9780135640944

2nd Global Edition

Authors: Jeffrey M. Perloff, James A. Brander

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