What is a minimum wage and how it affects the demand and supply?

Asked on 26.09.2018 in All Questions.
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A minimum wage is a minimum wage that employers can pay per hour for an employee to work for their company. In 2017, the UK minimum wage was set at £7.50 an hour for workers over 25. Higher wages increase incomes and can cause higher consumer spending as they have more disposable income available to spend. Employers cannot legally undercut the current minimum wage rate per hour which means that there is a danger a higher minimum wage may cause higher unemployment, which would cause lower economic growth. This applies both to full-time and part-time workers.   If workers receive a pay increase, then there will be a rise in consumer...
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