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.)
a. 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.
b. Who benefits from this policy?
c. Who loses?
d. Under what conditions might it make sense to support a minimum wage policy?
e. Under what conditions might it make sense to oppose a minimum wage policy?