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Yeah but wages are an input into the supply process. Therefore if there is a price floor on wages, producers won't be as willing to hire workers because it is making production more expensive. Less workers = lower production, and therefore deadweight loss.
On the minimum wage supply/demand graph, demand refers to how many units of labor producers want, and what they will pay for them. Supply is what workers are willing to work for. Maybe this is what's tripping you up? Cheers |
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