The minimum wage in 2008 was $6.55 cents until july 2008 when it was raised to $7.25. if the minimum wage in june was below the equilibrium wage and the increased wage in july was above the equilibrium wage, then the deadweight loss was greater in june than in july. firms' producer surplus was greater in june than in july. employment of low-skilled workers increased in july. unemployment was unaffected by the increase.

Question

Paola Bates

Business

25 October, 08:07

The minimum wage in 2008 was $6.55 cents until july 2008 when it was raised to $7.25. if the minimum wage in june was below the equilibrium wage and the increased wage in july was above the equilibrium wage, then the deadweight loss was greater in june than in july. firms' producer surplus was greater in june than in july. employment of low-skilled workers increased in july. unemployment was unaffected by the increase.

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Lawson Walton · Answer 1

The answer in the blank is that employment of low-skilled workers increased in July. This is because the rate of the minimum wage increased by July compared to that of June. So there will be more employment process due to the increase of the salary, because more skilled workers wants to grab the opportunity of the increased salary.