Suppose the Thai market of unskilled labor is in equilibrium where the equilibrium wage and equilibrium quantity of labor employed are W and L, respectively. Then, the government decides to impose a minimum wage at a wage of W* which is lower than W. Carefully explain whether the following statement is true or false "Therefore, with this imposed minimum wage, all unskilled labor are financially worse off"

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter16: The Markets For Labor, Capital, And Land
Section: Chapter Questions
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Suppose the Thai market of unskilled labor is in equilibrium where the equilibrium wage and equilibrium quantity of labor employed are W and L, respectively. Then, the government decides to impose a minimum wage at a wage of W* which is lower than W.


Carefully explain whether the following statement is true or false


"Therefore, with this imposed minimum wage, all unskilled labor are financially worse off"

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