English Deutsch Français Italiano Español Português 繁體中文 Bahasa Indonesia Tiếng Việt ภาษาไทย
All categories

in simple one-period model, suppose gov't set minimum wage, is it possible for consumer to have higher utility from a decrease in minimum wage? why/how?

2007-02-11 12:03:17 · 2 answers · asked by mdc 1 in Social Science Economics

2 answers

Yes Any consumer who's wage is not effect by the decrease will have a higher utility because the cost of some of the services he buys will go down, and he will see it as a price cut.

2007-02-11 13:44:47 · answer #1 · answered by meg 7 · 0 0

Of course..........prices will go down.

Additionally, employment will, over the long term, go up.

2007-02-12 13:36:53 · answer #2 · answered by Anonymous · 0 0

fedest.com, questions and answers