The minimum wage hike will mean a spike in unemployment: Study says By Jane Stevenson, Toronto Sun, September 19, 2017 The Canadian Ontario government plans to set a minimum wage at $15 an hour....

The minimum wage hike will mean a spike in unemployment: Study says
By Jane Stevenson, Toronto Sun, September 19, 2017
The Canadian Ontario government plans to set a minimum wage at $15 an hour. Currently, the median wage for low-skilled workers is $11.40. According to a study released Tuesday by the free enterprise Fraser Institute, the imposition of a minimum wage above current wages would lead to more unemployment for low-skilled workers.

(D) (i) Below, complete the market for low-skill labor correctly labeling both axes and
assuming demand for low-skill labor is perfectly inelastic; (ii) from information in the article, set out in the market the current equilibrium “price” and depict the equilibrium quantity for low-skill labor.



(E) (i) Depict in the market above in (D) the establishment of a $15/hour minimum wage by the Canadian Ontario government, and (ii) set out in the market the new equilibrium “price” and the new equilibrium quantity for low-skill labor.


(F) Is the graph in (D)(E) consistent with the argument by the Fraser Institute?  (3) _____ yes   _____ no
Why?