Suppose the government imposes a minimum wage P=$8 where labor demand is Q = 12-p and...

Suppose the government imposes a minimum wage P=$8 where labor demand is Q = 12-p and the labor supply is Q=2p

a.Draw the graph for demand and supply and indicate the range of the possible values for PS

b.What should the government set the minimum wage to maximize PS?

c.What is the best wage for the government to maximize PS?

Expert Solution

Rahul Sunny answered 1 year ago

Suppose the government imposes a minimum wage P=$8 where labor demand is Q = 12-p and...

Suppose the government imposes a minimum wage P=$8 where labor demand is Q = 12-p and the labor supply is Q=2p Draw the graph for demand and supply and indicate the range of the possible values for PS What should the government set the minimum wage to maximize PS? What is the best wage for the government to maximize PS?

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Suppose the government imposes a minimum wage P=$8 where labor demand is Q = 12-p and...

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