Draw a labor market for un-skilled labor assuming demand is perfectly inelastic. 8b. Insert a minimum wage above the equilibrium wage into the market and illustrate the new wage and new level of employment. 8c. If the number of un-skilled workers rises after a minimum wage is implemented, use economic analysis and derived demand to explain this effect in the labor market.

Draw a labor market for un-skilled labor assuming demand is perfectly inelastic. 8b. Insert a minimum wage above the equilibrium wage into the market and illustrate the new wage and new level of employment. 8c. If the number of un-skilled workers rises after a minimum wage is implemented, use economic analysis and derived demand to explain this effect in the labor market.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter20: Unemployment

Section20.3: Minimum-wage Laws

Problem 3QQ

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