In the labor market, workers would like to receive higher wages and firms would like to pay lower wages.Suppose that wor...

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De La SMIT 101 - In the labor market, workers would

April 14, 2018

In the labor market, workers would like to receive higher wages and firms would like to pay lower wages.
  • 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.
  • Suppose that firms 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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