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

2751 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Why is a monopoly inefficient?


What does the term comparative advantage mean? How can I use this in an essay based question?


What are the characteristics of perfect competition?


Define what a Demerit Good is and explain why they are often over-consumed in the free market.


We're here to help

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

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences