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torisob [31]
3 years ago
8

What will be the economic result of new legislation increasing the minimum wage above the equilibrium price of labor?

History
1 answer:
marissa [1.9K]3 years ago
5 0
If<span> the minimum wage is increased to go above the equilibrium price of labor, </span><span>it could result in a fall in demand for workers and an excess in the supply of workers. While </span><span>those who already have jobs are now earning a higher wage, there are some who no longer have jobs, since companies are reluctant to employ newer workers. So this may also result in unemployment. </span>

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