Question

in 2002 South African Government introduced the minimum wage for domestic workers with effect from 1st January 2019 it has been revised to R15 per hour with the exception of workers working fewer hours in certain areas.
Write the aid of diagram discuss the welfare effects of such a policy if the wage rate(assuming this is R12 per hour)

Answer 1

According to the diagram, the equilibrium price increases with a decrease in supply.