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economic theory predicts will happen with a minimum wage

By admin / April 26, 2020

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Discuss what economic theory predicts will happen with a minimum wage set above the equilibrium wage rate. Draw a supply and demand graph illustrating the effect of a minimum wage (do not just copy and paste a graph; create your own). Discuss the Efficiency Wage Theory and explain why its predictions are not valid for a minimum wage. Discuss what elasticity conditions (labor demand/supply perfectly elastic, elastic, unitary elastic, inelastic, or perfectly inelastic) would be needed for the minimum wage to benefit low-income workers. Your paper should be 3-4 pages in length

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