... variety of interesting problems for eco-nomic theory. Some of theseproblems were highlighted inour description of the theory of efficiency wages. These prob-lems, however, go beyond thestudy of ... surplus of workers, it might seem profitable to reduce the wage it is offering. But by reducingthe wage, the firm induces an adverse change in the mix of workers. In this case,at a wage of $10, ... diagram of the labor market, show the effect of an increase in the minimum wage on the wage paid toworkers, the number of workers supplied, the number of workers demanded, and the amount of unemployment.7....