Case study

Minimum wage of R13.69 per hour for domestic worker who works more than 27 hour a week

Minimun wage of R16.03 for domestic worker who works fewer than 27 hour a week.

Minimum wage for a domestic worker who works 48 hours a week will have minimum wage of R2669.24

Question 1

With the aid of the diagram discuss the welfare effect on this minimum wage when is: below equilibrium wage and above equilibrium wage.