Asked by Susana Contreras on Apr 24, 2024
Verified
Critics of the minimum wage contend that higher minimums cause employers to move up their labor demand curves, reducing employment of low-wage workers.
Labor Demand Curves
Illustrates the relationship between the wage rate and the quantity of labor that employers are willing to hire, showcasing how changes in wages can affect employment levels.
Minimum Wage
The lowest legally permissible amount that workers can be paid by employers, usually set by government policy.
- Become aware of the effect of labor unions on labor market conditions and wage scales.
Verified Answer
DR
DANDUGULA RAJESH (N160080)5 days ago
Final Answer :
True
Explanation :
Critics argue that increasing the minimum wage leads employers to demand less labor because the higher wage increases the cost of employing each worker, potentially leading to reduced employment opportunities for low-wage workers.
Learning Objectives
- Become aware of the effect of labor unions on labor market conditions and wage scales.