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13 August, 23:25

In a particular labor market, the demand for labor is given by W = 20 - (1 / 100) L, and the supply of labor is given by W = 4 + (1 / 100) L, where W is the wage rate, and L is the number of workers. Suppose that the government decides to impose a minimum wage of $15. The wage will:

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  1. 13 August, 23:38
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    The wage will create surplus of workers since it is above the equilibrium wage.
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