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Question: Study Economics in the News, and note that the minimum wage was last increased in 2010 and that since then other wage rates and the cost of most things that people buy have increased. Then answer the following questions.
a. How would you expect the demand for and supply of low-skilled labour to have changed from 2010 to 2014?
b. How would you expect the equilibrium wage rate of low-skilled labour to have changed from 2010 to 2014?
c. Would you expect the minimum wage to have increased, decreased, or had no effect on the unemployment rate from 2010 to 2014?
d. Draw a graph to illustrate your answers to parts (a), (b), and (c).
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