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The labor demand curve for Baristas at coffee shops in a certain city is E=300-20W where E is the Barista hours demanded and W is the wage in dollars per hour. The equilibrium wage is $4 per hour but the government puts in place a minimum wage of $5 per hour.
A. Draw the labor demand curve for baristas at the coffee shop.
B. What are the levels of employment before and after the minimum wage change?
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