00:01
Let's look at the impact of minimum wage laws on wages, workers supplied, workers demanded, and unemployment.
00:08
So we're looking at the labor market right now in equilibrium, and this is before a minimum wage is enacted.
00:14
But let's go ahead and suppose now that this minimum wage is implemented, and that's going to fall above this equilibrium.
00:20
The reason minimum wages are typically enacted is because people believe that that equilibrium wage that we're currently at is too low.
00:28
So we set that minimum wage somewhere above it.
00:31
So now we have a higher wage.
00:32
We went from w note to w1.
00:34
So our wages have increased.
00:37
And now we need to take a look at our different quantities.
00:39
So we're seeing all the way over here that our quantity supplied of labor has increased from q note to q1.
00:47
So we're seeing that increase in labor supplied...