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Labor economics, economics, Microeconomics
Suppose that Congress increases the minimum wage to $10 an hour.
a. Use a supply and demand model for unskilled labor to show the effect on the number of unskilled workers employed.
b. Does the change in employment depend on the labor demand elasticity or the labor supply elasticity or both? Explain, using a graph.
c. Which elasticity (or elasticities) affects the change in unemployment? Explain with a graph
Posted Date: 2/20/2012 11:42:11 AM | Location : United States
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