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(d) The workers who lose their jobs in (c) are able to move to another sector that is not covered by the
minimum wage (and are willing to work for any positive wage). Before the unemployed workers
arrive, aggregate labor demand and labor supply are given by Ld = 210 — 20m and L3 = 25 + 5w,
respectively. What is equilibrium wage in the uncovered sector before and after the minimum wage is increased to $12/hr?

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