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.

Answered by Martin G. Economics tutor

1994 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Explain the effect on economic growth if a government increases income tax (ceteris paribus).


Evaluate whether a tax on petrol in the UK would reduce the demand for cars.


How do you find the profit level of a firm graphically? Why is this the case?


Explain what you understand by the Lorenz Curve and Gini Coefficient.


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2024

Terms & Conditions|Privacy Policy