Discuss the theoretically expected impact of minimum wage legislation on each of the following: (a) Employment under neoclassical labour market model vs. monospoly labour market model. (b) Education Enrolment (c) Use a well-labelled diagram to depict the situation of monopsony in the labour market and briefly describe the components of the diagram. (d) Depict the equilibrium wage and level of employment in such a situation. Imagine you are a legislator setting a minimum wage in such an environment and it would be above the equilibrium wage. (e) Show the minimum wage that would maximize employment. (f) Show the minimum wage that would be the highest minimum wage consistent with there not being an adverse employment effect. (g) Why can legislative wage increases also increase employment in such an environment?
