Question: Malaysia Passes Its First Minimum Wage Law About 3.2 million low-income workers across Malaysia are expected to benefit from the country's first minimum wage, which the government says will transform Malaysia into a high-income nation. Employer groups argue that paying the minimum wage, which is not based on productivity or performance, would raise their costs and reduce business profits.
Explain the effects of the minimum wage on the workers' surplus, the firms' surplus, and the efficiency of the market for low-skilled workers.