126k views
3 votes
In a particular labor market, the demand for labor is given by W = 20 – (1 / 100)L, and the supply of labor is given by W = 4 + (1 / 100)L, where W is the wage rate, and L is the number of workers. Suppose that the government decides to impose a minimum wage of $15. The wage will:

User Keyshia
by
8.6k points

1 Answer

3 votes
The wage will create surplus of workers since it is above the equilibrium wage.
User Jinpu Hu
by
8.0k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.