Economics - South African Government - Case Study - Assessment Answer

 Economics - South African Government - Case Study - Assessment Answer 

Task

Read carefully and follow the instructions below. 

In 2002 the South African government introduced the minimum wage for domestic workers. With effect from the 1st of January 2019 it has been revised to R15 per hour with the exception of workers working fewer hours in certain areas.

With the aid of a diagram, discuss the welfare effects of such a policy if the wage rate set is above the market-clearing wage rate (assuming this is R12 per hour).

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