Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hi please help with drawing the graph Read the following extract carefully and answer the question that follows. [20 marks] DOMESTIC workers will no longer

Hi please help with drawing the graph

image text in transcribed
Read the following extract carefully and answer the question that follows. [20 marks] DOMESTIC workers will no longer be subjected to meagre salaries as the government has adjusted the minimum wage for domestic workers. with effect from December last year. The announcement was made by the Department of Labour Minister Mildred Dliphant and it coincided with the signing into law of the National Minimum Wage Bill by President Cyril Ramaphosa. According to the Department of Labour's new rates. domestic workers working in Area A {bigger metropolitan areas) who work more than 2? ordinary hours per week. must be paid a minimum of R13.69 per hou'. Workers who work fewer than 27 hours per week, must be paid a minimum of R1633 per hour. This will mean that a domestic worker who works 45 hours per week will now earn a minimum of R2 669.24 a month. Gardeners. drivers or people who look after children. the aged. sick. frail or disabled in a private household. all qualify as domestic workers. Source: httgshmwnewszai.comiSoulhAfricaiLocalfStanger-Weeklyisa-domestic-workers-to- get-higher-minimum-wage-Zm 90109-2 Accessed 24i091'2019 With the aid of a diagram. discuss the welfare effect of this new legislation if the new minimum wage is (1) below the equilibrium wage and (2) above the equilibrium wage rate with labour hours as your quantity variable

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Microeconomics 3e By OpenStax

Authors: OpenStax

3rd Edition

1711471496, 978-1711471495

More Books

Students also viewed these Economics questions