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An increase in the minimum wage could raise the total wage payment, W = wL(w), where w is the minimum wage and L(w) is the demand functiorn for labor, despite the fall in demand for labor services. Show that whether the wage payments rise or fall depends on the elasticity of demand of labor.
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An increase in the minimum wage could raise the total wage payment, W = wL(w), where w is the minimu...
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