Answer to Question #24585 in Microeconomics for saad
Let's assume that many of the workers in the silk shirt industry make the minimum wage. (Note: A minimum wage law sets a minimum acceptable wage for labor.) If the minimum wage is increased via this law, in the market for silk shirts we would expect:
A. P* up, Q* down
B. P* up, Q* up
C. P* down, Q* down
D. P* down, Q* up
E. A movement to the right along the supply curve.
C. P* down, Q* down, If minimum wage increases it will lead to increase of cost and increase of prices. Increase of prices will shift demand curve down
i am grouping my way at these maths , which I could not do with out you. You cover every question step by step and of top quality , inch by inch you guide me along the path, maybe a little expensive for me (71 years old who had a stroke) but top quality.
yours sincerely kevin