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Demand and Supply Curves
Demand and supply conditions in the market for unskilled labor are important concerns to business and government decision makers. Consider the case of a federally mandated minimum wage set above the equilibrium, or market clearing, wage level. Some of the following factors have the potential to influence the demand or quantity demanded of unskilled labor. Influences on the supply or quantity supplied may also result. Holding all else equal, describe these influences as increasing or decreasing, and indicate the direction of the resulting movement along or shift in the relevant curve(s).
A. An increase in the quality of secondary education
B. A rise in welfare benefits
C. An increase in the popularity of self-service gas stations, car washes, and so on
D. A fall in interest rates
E. An increase in the minimum wage
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