Answered: Wage rate (dollars per hour) 8 9 2 0 20…

Wage rate (dollars per hour) 8 9 2 0 20 20 30 0 40 D 40 80 80 Labour (millions of hours) Based on the above labour market graph, if the minimum wage is set at $3.00/hour then unemployment is

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter21: Unemployment

Section: Chapter Questions

Problem 20RQ: Why is there unemployment in a labor market with flexible wages?

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Question

Wage rate (dollars per hour)
8
9
2
0
20
20
30
0
40
D
40 80 80
Labour (millions of hours)
Based on the above labour market graph, if the minimum wage is set at $3.00/hour
then unemployment is

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