Use the concept of economic surplus to make your argument

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Assume that if the labor market is unregulated, the equilibrium wage for workers who do not have high school education is $5.00 an hour. (When possible use the concept of economic surplus to make your argument.)

Assume that the government imposes a minimum wage of $6.00 an hour. Draw a supply-demand diagram that shows what the impact of minimum wage would be.

Who benefits from this policy?

Who loses?

Under what conditions might it make sense to support a minimum wage policy?

Under what conditions might it make sense to oppose a minimum wage policy?

Reference no: EM13801616

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