Question

City councilwoman has proposed amending the living wage law. she suggests reducing the minimum wage to​ $6 per hour. assuming that the labor demand and supply curves were to remain in their present​ positions, how many people would be unemployed at a​ $6 minimum​ wage?

Answer 1

0 thousands of the people would be unemployed at a $6 minimum wage. It is because at a wage of $6 per hour which is the minimum wage per hour the quantity demanded of workers is higher than the quantity supplied of workers. The quantity demanded of the workers will be high than the quantity supplied of the workers.