How can I show the impact of a NMW on employment using a supply and demand graph?

You'd need to draw your pair of axes, labelling the vertical one "wages" and the horizontal one "quantity of workers". Your labour demand and supply curves should look like normal demand and supply curves. The National Minimum Wage (NMW) would be a horizontal line above the equilbrium point. This NMW intersects twice with the pair of axes, the distance between both intersections is your excess labour supply - i.e. the number of unemployed workers in this economy.

MG
Answered by Martin G. Economics tutor

2884 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Choose an example of a negative externality and explain one policy which may help to solve it.


How am I best able to improve my evaluation skills in essays in order to achieve higher marks?


Is inflation always bad?


Explain what is meant by the rate of inflation and  analyse the main causes of inflation


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2025 by IXL Learning