"On 1 March, South Africa's new minimum hourly wage rate came into force, rising 9.6% from R23.19 to R25.42 per hour. This rise is above consumer price inflation (CPI) of 6.9%. But with food inflation rates of 13.4% in January 2023, which affects poor people disproportionately, labour activists at the Casual Workers' Advice Office (CWAO) have called the increase a
"political attack on the working class."
If the minimum wage is set below the current equilibrium market wage...
• A. it will have no effect on the quantity of labour employed.
• B. the unemployment rate will fall.
• C. there will be an excess demand for labour at the minimum wage.
• D. the unemployment rate will rise.
2. "Motorists have been given an early
Christmas present after the Department of Mineral Resources and Energy announced decreases in the prices of petrol and diesel on Friday.
The department said that both grades of petrol would decrease by 65 cents per litre while diesel would decrease by between R2.35 and R2.41 per litre."
The relative adjustments in the price of petrol and diesel will have which of the following impacts in the market for diesel cars ceteris paribus?
• A. the demand curve for diesel cars shifts to the right.
• В.
the price of diesel cars will decrease.
• C. the market for diesel cars will not be affected by a change in the price of petrol.
• D. the supply curve for diesel cars shifts to the left.