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4a)Explain why the market for low-skilled labor is not Pareto efficient when the minimum wage is imposed. 4b)Although the minimum wage leads to an inefficient
4a)Explain why the market for low-skilled labor is not Pareto efficient when the minimum wage is imposed.
4b)Although the minimum wage leads to an inefficient allocation of resources, society may still prefer to impose the minimum wage in the interest of equity. Explain the logic behind this statement and use a welfare possibilities frontier and social indifference curves to support your answer.
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