How do minimum wages affect equilibrium price?


How do minimum wages affect equilibrium price?

Equilibrium Price:

In the market equilibrium, the demand curve intersect with the supply curve such that the quantity demanded is equal to quantity supplied of a product in such a way that the market equilibrium price and equilibrium quantity is achieved.

Answer and Explanation: 1

Become a member to unlock this answer!

View this answer

In the case of price floor, the minimum wage is set above the equilibrium wage rate such that the quantity supplied of labor exceeds than the...

See full answer below.

Learn more about this topic:

Minimum Wage and its Effects on Employment


Chapter 6 / Lesson 6

Understand the effect of minimum wage on employment. Study wage employment graphs and how they work, and discover pros and cons of minimum wage increase effects.

Related to this Question

Explore our homework questions and answers library