You can use the standard sketch format for a supply and demand graph. Put the quantity of labor on the horizontal axis and the wage rate (price) on the vertical axis. Label the intersection of the supply and demand curves as equilibrium (E). Now choose a higher price on the vertical axis, label it P2, and draw a line straight across from this higher price so that it intersects both the demand and supply curves. It is now clear that this market is in disequilibrium: supply and demand are not in balance. Business firms will hire fewer employees at the higher, government imposed minimum wage. The graph shows some job loss as a result of the higher minimum wage. However, this job loss may be offset by the fact that lower income households with minimum wage earners now have more income than before. Economic theory cannot provide a final answer on whether having or raising the minimum wage is a good idea. This falls under the category of normative economics.