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In: Economics

Suppose a country has a labor market in equilibrium. Next, suppose that a surge of people...

Suppose a country has a labor market in equilibrium. Next, suppose that a surge of people choose to immigrate into the country to search for economic opportunity. Suppose, just before the surge of immigrants began, the country’s people voted to approve a minimum wage law equal to the equilibrium wage that prevailed before the surge. Using the supply and demand model, explain what happens in the labor market.

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Rahul Sunny answered 2 years ago
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