Suppose the demand for unskilled labor were completely inelastic with respect to the wage rate. Using graphs

Question:

Suppose the demand for unskilled labor were completely inelastic with respect to the wage rate. Using graphs similar to those in Figure, but modified to reflect this new assumption, explain how a minimum wage above the equilibrium wage for covered unskilled workers would affect employment and the wage rate among:

a. Covered, unskilled workers

b. Uncovered, unskilled workers

c. Skilledworkers

Suppose the demand for unskilled labor were completely inelastic
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Macroeconomics Principles and Applications

ISBN: 978-1133265238

5th edition

Authors: Robert e. hall, marc Lieberman

Question Posted: