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How could setting a new minimum wage give us an excess supply of workers in the us?
If the minimum wage is raised, more people who are not currently working will be willing to work for that wage, increasing the supply of workers. Also tend to hire less employees at higher wages, causing a lessening of demand.
The combination of less demand are more supply could cause an excess supply of workers at minimum wage jobs, which tend to be unskilled.
What else can I help you with?
When is there an equilibrium wage?
When there is no excess in demand for workers and in supply of workers (By Solomon Zelman)
When minimum wage increases for workers how does this affect the supply curve for a company?
When minimum wage increases for workers this affects the supply curve upwards for the company. This will mean that the cost goes up which pushes the curve to the left.
How might a minimum-wage law and that the supply and demand of workers?
A minimum-wage law sets a legal floor on wages that employers must pay, which can lead to increased income for low-wage workers. However, if the minimum wage is set above the equilibrium wage determined by supply and demand, it may result in a surplus of labor, meaning more workers may seek jobs than there are positions available. This can lead to higher unemployment rates among low-skilled workers, as employers may hire fewer workers or reduce hours to offset increased labor costs. Ultimately, the impact of minimum wage laws on labor supply and demand depends on their specific levels and the economic context.
HOW EXCESS SUPPLY IN THE MARKET FOR BANANAS?
excess supply in the market for bananas
What is a simple definition of equilibrium wage?
In economics, the equilibrium wage is the wage rate that produces neither an access supply of workers nor an excess demand for workers and labor ...en.wikipedia.org/wiki/Equilibrium_wage
How do you use excess in a sentence?
We had an excess supply of bread.
How do you response for excess demand and excess supply?
Increase the price
What is the difference between excess demand and excess supply?
Excess demand (a seller's market) means the product is in short supply and prices will rise. Excess supply (buyer's market) means too much product as compared to demand and therefore prices will fall.
How Excess demand and excess supply eliminated by market forces?
Excess demand is easily eliminated by market forces. If either the price or the supply goes up, demand will decrease exponentially.
When does excess supply occur?
Excess supply occurs when, at a given time, the equilibrium price of the market is less than the price that the goods are supplied at.
How do you eliminate excess demand and excess supply in equilibrium?
Price is one way to eliminate excess demand and excess supply. Once prices start to rise, the amount of people purchasing or needing certain products go down.
How does minimum wage affect supply and demand?
Minimum wage affects supply and demand by influencing the labor market. When a minimum wage is set above the equilibrium wage, it can lead to a surplus of labor, as more individuals are willing to work at the higher wage, but employers may reduce hiring or lay off workers due to increased labor costs. Conversely, a higher minimum wage can increase the purchasing power of workers, potentially boosting demand for goods and services. However, if employers raise prices to cover increased labor costs, it may offset some of the demand benefits.
