Charles M. answered • 07/26/19
Tutor
New to Wyzant
34 Years Corporate Experience, 9 Years College Teaching Experienc
Low taxes reduce cost of doing business, shifting supply curve to the right, so at any price, Qs is greater. More workers are needed to create the greater quantity supplied.
Reduced regulations have the same effect. Regulations add cost to the business, without generating revenue for the government. Lower regulation = lower cost = Supply curve shift to the right.
Finally, removing minimum wage allows wages to sink to market equilibrium, which increases quantity of labor demanded by firms.
