Suppose that the Fair Work Commission imposes a minimum wage of $19 per hour.
(i) How many hours of employment are exchanged in the market?
Below is related information:
Assume that the market for unskilled labour in Australia is a competitive market and can be described by the following demand and supply curves:
D = 1,500,000 - 60,000W S = 120,000W - 1,200,000
Where W = wage rate per hour for labour, D is hours of labour demanded and S is hours of labour supplied.