Answered

IDNLearn.com provides a seamless experience for finding accurate answers. Get the information you need from our community of experts who provide accurate and comprehensive answers to all your questions.

The government of Egalitariania wants to favor firms and is considering implementing a maximum wage. Assume the maximum wage is both binding and less than the equilibrium wage. What happens to the employment of workers

Sagot :

Parrainidn

Answer: It will increase

Explanation:

A maximum wage means that companies do not have to pay more than a certain wage limit. If this wage limit is less than the equilibrium wage, companies would be able to spend less on wages than they are normally supposed to.

Their cost will therefore reduce and they will be able to hire more workers with the money they would have spent to pay the workers the equilibrium wage thereby increasing the number of people employed in the country.

We are delighted to have you as part of our community. Keep asking, answering, and sharing your insights. Together, we can create a valuable knowledge resource. Your search for answers ends at IDNLearn.com. Thanks for visiting, and we look forward to helping you again soon.