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If the government will impose an effective minimum wage that raises wages in a labor market, what will happen to the quantity of labor hired
If the government will impose an effective minimum wage that raises wages in a labor market, what will happen to the quantity of labor hired (or level of employment) if this market is:
a) a perfectly competitive labor market
b) a monopsonistic labor market
Illustrate graphically and briefly explain the effect on employment in each letter.
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