Currently, the federal minimum wage is set at $7.25 per hour. A survey conducted by Newsweekmagazine (June 27, 2011) indicated that many Americans would be willing to work for far less than the minimum wage-some as low as 25¢ per hour! What would happen if the U.S. government eliminated the minimum wage and instead let wages be set by the marketplace?

Currently, the federal minimum wage is set at $7.25 per hour. A survey conducted by Newsweekmagazine (June 27, 2011) indicated that many Americans would be willing to work for far less than the minimum wage-some as low as 25¢ per hour! What would happen if the U.S. government eliminated the minimum wage and instead let wages be set by the marketplace?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter4: Labor And Financial Markets

Section: Chapter Questions

Problem 20RQ: Whether the product market or the labor market, what happens to line equilibrium price and quantity...

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