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Why is the demand for labor called a derived demand?
• In the labor market, what are the firm’s demand curve for labor and the workers’ supply
curve of labor?
• How is a firm’s wage normally determined in the labor market?
• How could Amazon decide to raise its minimum wage to $15 per hour, despite the
federal minimum wage being fixed at $7.25 per hour?
• What are positive and negative effects of Amazon raising its minimum wage to $15 per
hour on its employees, total revenue, and other companies and their employees?
