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igomit [66]
3 years ago
12

Economics Question: How does a minimum wage cause change in the market? Labor shortage or surplus ?

Social Studies
1 answer:
shusha [124]3 years ago
4 0
A minimum wage would cause a labor shortage, because workers wouldn’t be willing to work for a minimum wage. A surplus refers to is that there is more supply of a product than there is demand for said product.
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Read 2 more answers
When are negative externalities present?
ElenaW [278]

Answer:

The negative externalities are present when there is a market failure. The answer is B.

Explanation:

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If the negative externality is taken into account, then the cost of the widget would be higher. This would result in decreased production and a more efficient equilibrium. In this case, the market failure would be too much production and a price that didn't match the true cost of production, as well as high levels of pollution.

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