n the labour market for carpenters, the current market clearing wage rate is R800 per day. With the
aid of a diagram, discuss the welfare effects of government intervention in the form of legislation that
sets the minimum wage rate for a carpenter at R1000 per day.
1
Expert's answer
2019-04-01T11:07:18-0400
If the minimum wage rate for a carpenter at R1000 per day is set, then there will be a surplus of labor, so the market will become inefficient and the deadweight loss will be created.
"assignmentexpert.com" is professional group of people in Math subjects! They did assignments in very high level of mathematical modelling in the best quality. Thanks a lot
Comments
Leave a comment