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-(Figure: The Minimum Wage) Use Figure: The Minimum Wage. By how much does the quantity of labor demanded fall when the government imposes a binding minimum wage of P₃?

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Use the following to answer questions:

-(Figure: The Minimum Wage) Use Figure: The Minimum Wage. By how much does the quantity of labor demanded fall when the government imposes a binding minimum wage of P₃?

Quizplus · Accepted Answer

A binding minimum wage set at P3 causes the quantity of labor demanded to fall from Q1 to Q2, so the decrease is Q2 - Q1.

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