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

3104 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

How can the government use Demand side policies to boost economic growth


Explain the significance to fiscal policy of the philips curve, referencing the interrelation of its components.


With the help of a diagram, explain how collusion between energy suppliers could affect the retail prices paid by consumers. (9)


Evaluation points for macroeconomics (Unit 2)


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:

© 2026 by IXL Learning