If we assume that the current equilibrium wage for low-skilled labor is $8 per hour and the minimum wage is increased from $5.75 to $7.25 per hour, then A. unemployment among low-skilled workers will increase. B. unemployment among low-skilled workers will decrease. C. unemployment among low-skilled workers will remain unaffected.

Question

Business

Kyle Collins

20 October, 17:24

If we assume that the current equilibrium wage for low-skilled labor is $8 per hour and the minimum wage is increased from $5.75 to $7.25 per hour, then A. unemployment among low-skilled workers will increase. B. unemployment among low-skilled workers will decrease. C. unemployment among low-skilled workers will remain unaffected.

+2

Answers (1)

Know the Answer?

Sissy · Answer 1

B

Explanation:

Unemployment among low-skilled workers decrease since they are getting higher pay now that is $1.5 per hour. Although it is below the equilibrium rate but still there are sure chances that the people will be more willing to work.

It does not necessarily mean that now labour is available according the demand of labour because the increased rate is below than the $8