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

3176 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

What is price elastic demand?


What measures could the government take to boost aggregate demand?


Perfect competition theory is based on very unrealistic assumptions. Evaluate whether such a theory is useful in explaining the behaviour of real world firms.


How does actual economic growth differ to potential economic growth?


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