I’m stuck on a Economics question and need an explanation.
Please respond to the following prompt:
In chapter 4 we learn about price floors and price ceilings. In the labor market, the minimum wage is a price floor. Like every price floor, the minimum wage causes a surplus. A surplus in the labor market is called “unemployment”. Those who are unemployed as a result of the minimum wage are represented on the supply curve (workers are sellers in the labor market) just to the left of the equilibrium quantity. Because of the price ceiling, this equilibrium is never reached… Please message me first before doing anything because I am willing to provide log-in details.