Intermediate microeconomic (400 words) need more explanation
How do minimum wages affect employment, and unemployment? In a
competitive labor market, the demand for workers is given as
QD=10,000-100W, and the supply of workers is given as
QS=2,000+1,900W, where Q is the quantity
of workers employed and W is the hourly wage. What is the initial
equilibrium wage and employment level? Suppose that the government
decides that $5 per hour is the minimum allowable wage in any
market. How would this...