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April 15, 2024

seu university Macroeconomics Finance Question An increase in the minimum wage above the equilibrium wage

In the labor market, workers would like to receive higher wages and firms would like to pay lower wages. 5 Marks

a. Suppose that workers succeed in having a minimum wage established above the equilibrium wage. What will happen to the number of workers employed when compared to the original equilibrium? Explain. 2.5 Marks

b. Suppose that firm succeed in having a maximum wage established below the equilibrium wage. what will happen to the number of workers employed compared to the original equilibrium? Explain

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