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Varvara68 [4.7K]
4 years ago
11

PLEASE HELP Create a graph to show the effect (shortage or surplus) of raising the minimum wage. Discuss why these issues do or

do not affect your claim(My claim is that we should raise minimum wage). Include the appropriate labels for your graph such as: price quantity supply demand surplus or shortage

Business
1 answer:
Svetlanka [38]4 years ago
3 0

Answer:

Raising the minimum wage has the effect of producing an excess supply of workers, because the wage is set at a price where supply of workers is higher than the demand of firms for hiring them, and since the wage is not allowed to go any lower, this excess supply remains unsolved.

This situation affects low-skilled workers in particular, and those who are not as productive to be paid the minimum wage, are essentially left out of the labor market.

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