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You're doing number 46 from chapter 3, most government policy decisions have winners and losers.
00:05
What are the effects of raising the minimum wage? and it's more complex than simply producers lose and workers gain.
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Who are the winners and who are the losers? and what exactly do they win and lose? to what extent does the policy change achieve its goals? so in case you don't know, a minimum wage is what it sounds like.
00:21
It's the minimum amount you can pay a worker by law.
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In other words, it is a price floor in the market for workers.
00:27
So let's graph that.
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Here's your supply.
00:33
Supply of workers demand for workers, price, in other words, wage, and quantity of workers.
00:43
Now we're going to introduce our price floor here, which we'll call mw.
00:49
Here's our equilibrium.
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Here is our quantity demanded...