How can I show the impact of a NMW on employment using a supply and demand graph?

You'd need to draw your pair of axes, labelling the vertical one "wages" and the horizontal one "quantity of workers". Your labour demand and supply curves should look like normal demand and supply curves. The National Minimum Wage (NMW) would be a horizontal line above the equilbrium point. This NMW intersects twice with the pair of axes, the distance between both intersections is your excess labour supply - i.e. the number of unemployed workers in this economy.

MG
Answered by Martin G. Economics tutor

3147 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Explain the use of interest rates in the economy.


Distinguish between positive and normative statements


Explain why a rise in investment should help to increase the rate of growth of the UK economy


What is the difference between absolute and comparative advantage?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2026 by IXL Learning