The minimum wage in 2019 was $17.70 per hour. Now imagine that, in 2020, the government has passed a new policy that decreases the minimum wage to $14.00 per hour. Use clear writing to describe how various market outcomes, such as the number of workers employed and shortage / surplus of workers, change from 2019 to 2020.

Issue

How will employers, workers, and the market outcome respond to the decrease in minimum wage?

Law:

Explain the Laws of Demand and Supply.

Application:

Explain how these laws apply to the labour market.

Conclusion