Price Floor Graph Minimum Wage. What is a minimum wage and what are its effects if it is set above the equilibrium wage. If this is set above the prevailing market rate it may in fact lead to unemployment.
May 06 2015 on Show in a supply and demand diagram how minimum wage can increase unemployment. Mar 01 2021 As of 2021 the federal minimum wage rate in the United States is 725 per hour. 3 This means that it is illegal for an American worker to.
What is a minimum wage and what are its effects if it is set above the equilibrium wage.
What is a minimum wage and what are its effects if it is set above the equilibrium wage. A monopsony employer faces a supply curve S a marginal factor cost curve MFC and a marginal revenue product curve MRPIt maximizes profit by employing L m units of labor and paying a wage of 4 per hour. Mar 31 2019 Graph and Analysis. Suppose the local government imposes a price floor.
