Assume that the labor market for retail workers is generally unskilled. If a minimum wage is set in the labor market for retail
1 answer:
Answer:
there will be a surplus of retail workers in this labor market.
Explanation:
In the attached diagram the scenario is illustrated.
When the minimum wage is above the equilibrium wage it means that the minimum wage is above what employees are willing to pay workers. So employees will be less wiling to pay this amount.
There will be a reduction in the number of available slots for workers.
On the other hand workers will receive higher wage than they expected but since the slots for work are now limited there will be a surplus of labour in the market
You might be interested in
Answer:
Ruby should go to college.
Explanation:
Ruby is currently 50 years old and earning $50,000 per year.
She would like to retire at 67.
She is thinking of going back to college, to complete a graduate degree.
After completing a graduate degree from the college she would earn $55,000.
The total cost of a graduate degree is $75,000.
Ruby still has 17 years to work and earn.
Her income will increase by $5,000 after college
The increase in income earned after college until retirement
= $5,000 17
= $85,000
Since the increase in income is greater than the cost of going to college, Ruby should go to college.