Assume that if the labor market is unregulated, the equilibrium wage for workers who do not have high school education is $5.00 an hour. (When possible use the concept of economic surplus to make your argument.)
Assume that the government imposes a minimum wage of $6.00 an hour. Draw a supply-demand diagram that shows what the impact of minimum wage would be.
Who benefits from this policy?
Who loses?
Under what conditions might it make sense to support a minimum wage policy?
Under what conditions might it make sense to oppose a minimum wage policy?