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Assume that if the labor market is unregulated, the equilibrium wage for workers who do not have high school education is $5

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Assume that if the labor market is unregulated, the equilibrium wage for workers who do not have high school education is $5.00 an hour.  (When possible use the concept of economic surplus to make your argument.)


-Assume that the government imposes a minimum wage of $6.00 an hour.  Draw a supply-demand diagram that shows what the impact of minimum wage would be.
-Who benefits from this policy?  
-Who loses?
-Under what conditions might it make sense to support a minimum wage policy?
-Under what conditions might it make sense to oppose a minimum wage policy?