Question

Can yau explain which states wene fected hy the Far Labot Aut of 9032 Please explain Whet co you suppose wauld be the repercussions if States were able to set their own nate of mini mum wase? Please explain, TIn theacy would a deeccase in mini mum wage aute to a decca in the Surplus ot laborers in the labor market 2

Answer 1

the act of 2013 affected around 19 states in columbia as these states were charging different minimum wages that has to be set at a common standard. usually if states are allowed to charge their own minimum wage, the would consider the local factors that may be excluded when the common minimum wage was set eventually wages would be at its normal level in all economies. Minimum wage is set by the government so if their is a decrease in minimum wage due to excess labor supply even at lower rates the supply will not decrease. it may actually increase.