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managerial economics_4 - government involves in this market...

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2. Consider a labor demand curve facing employers. What could be the effect of minimum wage on their demand curves? How about for workers? => In the free market, the wage will be managed in point E where the supply curve and the demand curve meet. However, the Pe is too low for living, so
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Unformatted text preview: government involves in this market to set minimum wage. Because the minimum wage is higher the Pe, surplus (supply over the demand) will appear with unemployment. P Minimum wage Q...
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