“On November 26, 2018, South African President Cyril Ramaphosa signed into law the National Minimum Wage Bill (now the National Minimum Wage Act), which the National Assembly and the National Council of Provinces, the two houses of the country’s Parliament, passed on May 29 and August 21, 2018, respectively. (South Africa’s Ramaphosa Signs Minimum Wage Bill into Law, REUTERS (Nov. 26, 2018); National Minimum Wage Bill (B31-2017): Bill History, PARLIAMENTARY MONITORING GROUP (last visited Nov. 26, 2018); National Minimum Wage Act (NMWA), Act No. 9 of 2018, GOVERNMENT GAZETTE (Nov. 27, 2018).) According to the memorandum accompanying the Bill, the “main object of the Bill is to provide for a national minimum wage in order to advance economic development and social justice by improving the wages of lowest paid workers, protecting workers from unreasonably low wages and promoting collective bargaining and supporting economic policy.” (National Minimum Wage Bill, B 31B—2017, Memorandum on the Objects of the National Minimum Wage Bill, 2017, at 11.)” (Hanibal, 2018). Use this scenario to answer the following question. Based on this situation, which statement correctly analyses the effect on the supply of labour?

Question

Answer

The increase in wage rate will have no effect on the supply of labour

Answer

The increased wage rate will cause workers to reduce the quantity of labour they supply.

Answer

The supply of labour will remain unchanged because workers' willingness to work is not affected by changes in the wage rate.

Answer

An increase in the wage rate will increase the quantity of labour supplied

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“On November 26, 2018, South African President Cyril Ramaphosa signed into law t...

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