In The Diagram Above What Will Happen If The Government Sets The Minimum Wage At Point B

There will be a surplus of workers. The legislature wishes to regulate one of the products to provide safer more efficient and standard quality to its citizens.

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There will be a surplus of workers.

In the diagram above what will happen if the government sets the minimum wage at point b. In addition to the general minimum wage for example businesses hoping to win federal government contracts will have to adhere to the minimum wage standards mandated for contractors. The minimum wage will fall to meet equilibrium. When the government imposes a minimum wage the real wage is determined by the minimum wage divided by the price level not by the interaction between labor supply and demand.

If there is inflation and a fixed nominal minimum wage then the level of employment will increase and the real minimum wage will decrease. The amount of labor hired in the market decreases. Thus while those who have jobs earn a higher wage there are now some individuals who no longer have jobs.

They will not sell as many potatoes in the diagram above what will happen if the government sets the price for potatoes at point a. Two things happen when the government imposes a minimum wage. The equilibrium wage and employment levels are 250 and l1 respectively.

Question 17 multiple choice worth 5 points 0403 mc. You see the normal supply and demand curves. Governments can set price floors for their area of jurisdiction or they can limit floors to their own business arrangements.

In the diagram above what will happen if the government sets the minimum wage at point a. The minimum wage will rise to meet equilibrium. The government then imposes the national minimum wage at the rate 360.

The state legislature asks you to analyze several product markets for natural monopoly qualities. The diagram above is the classic minimum wage set up. In the diagram above what will happen if the government sets the minimum wage at point a.

There will be a shortage of workers. In our example the number of unskilled workers employed decreases from 1000 to 800. During a cold winter there is a natural gas shortage.

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