The advantages and disadvantages of a national minimum wage
A national minimum wage sets a legal floor on pay. It can raise living standards for low-paid workers, but it may also reduce the number of jobs employers offer.
Real World
After the UK's minimum wage was raised repeatedly between 2016 and 2024, employment among low-paid workers actually rose — challenging the classical prediction of job losses and supporting the monopsony counterargument.
Exam Focus
For 'evaluate' questions, contrast the competitive labour market model with the monopsony model to access top-band marks.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
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