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11 October, 15:58

What will be the economic result of new legislation increasing the minimum wage above the equilibrium price of labor?

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  1. 11 October, 16:16
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    If the minimum wage is increased to go above the equilibrium price of labor, it could result in a fall in demand for workers and an excess in the supply of workers. While those who already have jobs are now earning a higher wage, there are some who no longer have jobs, since companies are reluctant to employ newer workers. So this may also result in unemployment.
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