Question
In a labour market if the supply of labour is vertical (instead of being upward sloping) how will a minimum wage law change the equilibrium
In a labour market if the supply of labour is vertical (instead of being upward sloping) how will a
minimum wage law change the equilibrium wage and quantity of labour? Will it still create surplus
of labour in the market? Explain with a diagram. Also, how does consumer and producer surplus
change after the minimum wage law is imposed?
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Managing in a Global Economy Demystifying International Macroeconomics
Authors: John E. Marthinsen
2nd edition
128505542X, 978-1305176157, 1305176154, 978-1285055428
