A Study of the Effects of the Minimum Wage on Employment

question 248

Essay

A study of the effects of the minimum wage on employment of low-skilled workers estimated the price elasticity of demand for low-skilled workers is -0.75.Suppose that the government is considering raising the minimum wage from $7.25 per hour to $7.75 per hour.Based on this information, calculate the percentage change in the employment of low skilled workers.Use the midpoint formula.

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Definitions:

Sample Variances

A measure of variance calculated from a sample of a population, used to estimate the variance of the entire population.

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The process of conceiving and executing marketing strategies that target international markets and audiences.

Normal Distributions

A type of continuous probability distribution for a real-valued random variable that is symmetric and describes data that cluster around a mean.