how many people lost their jobs when the minimum wage increased from $12 to $18?\n\na. 15\nb. 18\nc. 33\nd. 45
how many people lost their jobs when the minimum wage increased from $12 to $18?\n\na. 15\nb. 18\nc. 33\nd. 45
Answer
Explanation:
Step1: Identify equilibrium - employment
At the equilibrium wage of $12, the number of workers employed is 33 (where labor - demand and labor - supply intersect).
Step2: Identify employment at new minimum wage
At the new minimum wage of $18, the number of workers demanded is 18 (where the $18 minimum - wage line intersects the labor - demand curve).
Step3: Calculate job losses
The number of people who lost their jobs is the difference between the number of workers at equilibrium and the number of workers demanded at the new minimum wage. So, $33 - 18=15$.
Answer:
A. 15