Question

Suppose the minimum wage in this economy is $8.70 per hour. An unemployed worker is defined as someone who is willing to work at the prevailing wage but is unable to find employment. Because the minimum wage lies above the equilibrium wage, it is binding, which means it is also the prevailing wage. If the wage is not allowed to fall below $8.70 per hour, the size of the unskilled labor force isworkers, andunskilled workers are considered unemployed.

Answer 1

Answer:

the size of the unskilled labor force its workers, and unskilled workers are considered unemployed will increase, as there will be more unemployed people because the price has been increased through government intervention and changed from the equilibrium, firms will be less willing to hire labor at the new price as it is higher than the equilibrium price.

Explanation: