Which type of price control is a binding minimum wage

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Reference no: EM13999378

Introductory economics textbooks usually first introduce the minimum wage as an application of demand and supply analysis. This initial discussion is usually based on the following assumptions: the labor market is perfectly competitive, the minimum wage covers all workers, and worker productivity is unaffected by the wage rate. Following the assumptions, demonstrate the outcome from raising the minimum wage. Which type of price control is a binding minimum wage? Who, or which part of the labor force is thought to be most affected by a "minimum"-wage? Find and discuss possible falacies in the standard discussion of minimum wage outcomes. Is there a difference between the short-run and long-run effects from minimum wage changes? Provide all necessary figures, and discussion to fully discuss the scenario.

Reference no: EM13999378

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