Why do minimum wage laws cause unemployment? Explain, using a supply and demand diagram.

Q: If higher wages raise productivity, does supply and demand determine wages?

A:

Q: Give two reasons why a firm might want to pay workers above the competitive wage and how can this…

A: Efficiency wages refers to the employers paying more wages to the workers. This means that the wages…

Q: does imposing a living wage have the same outcome as a minimum wage?

A: Minimum wage is the lowest wage that has to give for the labor. Generally, minimum wage is greater…

Q: Theoretically, when would we expect a minimum wage to increase unemployment under perfect…

A: in labour market equilibrium is determined by the demand and supply for labor. where demand and…

Q: What Is the Effect of the Minimum Wage on Employment ?

A: Minimum wage rate is the minimum wage that the employer should pay to the employee.  The minimum…

Q: What is a minimum wage? Explain why it may fail to help the poor households in an economy.

A:

Q: Who bears the motherhood wage penalty

A: Lower hourly pay is linked to motherhood.

Q: Assume the labor market for loggers is perfectly competitive. How would each of the following events…

A: Perfect competitive market refers to the market in which the price remains the same is equal to…

Q: If you were to accept a position in another state, why do you believe it would be important to…

A: The laws that aim to correct the power imbalance between employers and workers within the work…

Q: What is the purpose of wage suppression? How wage suppression is defined in the literature?

A: The payment being made for labor or services in terms of money being decided as per the contract…

Q: Is the Minimum Wage Law a Labor Standard Law or a Labor relations Law. Why?

A: Labour standard law refers to providing the basic rights of the and regulations to the labour. And…

Q: what impact does minimum wages have on the labor market? Discuss giving examples

A: The impacts of the minimum wage on the labor market are the following: Unemployment Uncompetitive…

Q: What is number 3a, 3b 3c and 3D

A: Hi there! Thank you for submitting the question. Since we only answer up to three sub parts, we will…

Q: Summarize the evidence regarding the impact of the minimum wage on employment.

A: Minimum wage on employment is a concept introduced as a method to alleviate wage rise and inequality…

Q: Some economists argue that unions raise prices and cause unemployment by bargaining for higher wages…

A: Answer -     Unions :- Unions are the collection of people who come together for the fulfillment of…

Q: Draw a perfectly competitive labor market. Is their involuntary unemployment in this model of the…

A: Following is the diagrammatic representation of a perfectly competitive labour market.  In a…

Q: the supply of labor will not change if all pricess and wage rates increase by the same percentage?…

A: If prices increase the supply for the good will also increase as firms will get higher price for the…

Q: Karl Marx argued that an 'Industrial Reserve Army of the Unemployed' would be produced by capitalism…

A: a). There are valid justifications why capitalism produces and reproduces unemployment after some…

Q: Minimum wage is an example of what kind of economic

A: Minimum wage means the minimum amount of wage/remuneration that an employer is required to pay to…

Q: Many cities and states are either raising minimum wage to more than double the national minimum or…

A: ADVANTAGE The essential contention progressed for raising the minimum wage permitted by law is that…

Q: If you worked for a union, would you accept higher wages if it meant others would be laid off? Why…

A: A union is formed when workers of a particular industry or company come together as a group in order…

Q: Explain four ways in which a firm might increase its profits by raising the wages it pays sentence.

A: Efficiency wage theory depicts that the firm will operate more efficiently if it pays the higher…

Q: a) Economists call farm price supports "welfare for the rich"     b) Rent controls help to fight…

A: Economics is the branch of social science which deals with problems related to production,…

Q: 5. Minimum-wage laws and unemployment Consider the market for labor depicted by the demand and…

A: In the labour market wage is determined by the interaction of labour demanded and labour supplied.…

Q: 5. Minimum-wage laws and unemployment Consider the market for labor depicted by the demand and…

A: At Equilibrium Price or Wages, quantity of labor supplied is equal to quantity of labor demanded.…

Q: Consider the market for labor depicted by the demand and supply curves that follow. Use the…

A: Here, the wage = $7.50 Labor demanded = 625 units Labor supplied = 375 units Demand is exceeding…

Q: What can be done to over come the shortage of workers(. Explain 100 words)

A: A scarcity happens whenever demand for a commodity or service surpasses sufficient supply and the…

Q: Based on the figure below, which movement could be caused by an increase in the wages of oil…

A: There are many factors that shift the supply curve, one of which is cost of production.

Q: What are the main costs and benefits of increasing the minimum wage?

A: The lowest wage that companies pay to workers is called minimum wage rate. The benefits of…

Q: What would you expect to happen to wages in a monopsonistic labor market?

A: A monopsony is a business environment in which only one purchaser, the monopsonist, is present. A…

Q: The table gives the demand and supply schedules of teenage labor.   Wage rate ($ per hour)…

A: When market supply and demand are in equilibrium, prices become constant. This is known as…

Q: What happens to employment in country A after minimum wage is introduced?

A: Labor Force refers to the total number of workers that are willing to work at the given wage levels…

Q: How do wages affect labor supply?

A: The labor is an important factor of production and the wage is the income earned by labor for…

Q: What are the welfare effects of a binding minimum wage? Use a graphical approach to show what…

A: Answer in step 2.

Q: In 1997 and 1998, the economy expanded, increasing the demand for labor and pushing up wages.…

A: Meaning of Demand and Supply: The term demand refers to the willingness of an individual to…

Q: How do minimum wages affect wages, employment, and unemployment?

A:

Q: minimum wage laws may cause unemployment. What age group is most adversely affected

A: Minimum wage laws means minimum wage govt sets below which no one will be employed. This is to…

Q: Discuss the impact of minimum wage laws on labour supply?

A: The demand curve for labour, under the ceteris paribus assumption, shows the amount of labor…

Q: 5. Minimum-wage laws and unemployment Consider the market for labor depicted by the demand and…

A: When the price lies above the equilibrium level, surplus will occur. There is surplus when quantity…

Q: In regards to minimum wage, should there be a national standard or should minimum wage be regulated…

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…