Principles of Microeconomics / Unit 2 MIC 0127 short lesson, about 20 seconds
The Minimum Wage as a Floor
Captions available
The idea
A minimum wage is a price floor in the labor market. Above the equilibrium wage, the model predicts more workers offered than hired: a labor surplus, which is unemployment.
In practice
The diagram is the grain market with labor hours along the bottom.
Where people slip
The effect's size is contested; unit three states both sides' evidence. The model gives a direction, not a number.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Builds on
Unlocks
Something wrong in this lesson? Flag it