"" On April 1, 2009, in the middle of a recession, the government of the province of Ontario, Canada increased the provincial mi

Question

tangare [24]

2 years ago

7

"" On April 1, 2009, in the middle of a recession, the government of the province of Ontario, Canada increased the provincial mi

nimum wage from $8.75 to $9.50. What will the likely effect of this policy be?

Business

1 answer:

Digiron [165] · Answer 1 · 2022-10-03T21:01:54+03:00

Answer:

Explanation:

The effect of this policy will lead to both the leftward shift in the labor demand curve and the higher minimum wage will

lead to an increase in the unemployment rate because once the minimum wage increases, firms will have to pay higher salaries and this will lead to higher costs and therefore firms will retrench employees