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The following question is about minimum wages. Treating labor as commodity traded in the economy at some price(wage) determined by the supply and demand for various types of labor.
a. What type of workers are likely to be the most affected by minimum wages? Eg. teenagers, skilled craftspersons, handicapped workers, etc.
b. Explain the effect on wages, levels of employment, and possible unemployment in the market most directly affected by this law. Also, what forms of competition among workers might be more prevalent with the higher minimum wage?
c. Consider that unionized workers generally earn much more than minimum wage. Unions, however, have always strongly advocated increases in the minimum wage. Are the unionists just interested in the welfare of their poor cousins?
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