This graph shows a graph representing the effect of minimum wages on the number of workers, working in an economy. When the minimum wage is set the number of workers goes down from point a to b creating unemployment in the economy. As a result of this the government would then have to introduce new jobs or the businesses would have to increase their price so they could then afford to hire more workers to increase the demand for labor to reach a new equilibrium point with less unemployment in the economy.
As shown on the graph above Minimum wages