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Question: Using a perfectly competitive labor supply and demand model, show the theoretical effect of how a binding minimum wage affects employment and wages.
Your graph should clearly label the equilibrium wage and employment level without the minimum wage and clearly label the wage and employment level with the minimum wage.
Recopy the graph from part (a) and indicate the number of workers who benefit from the minimum wage. Explain how they benefit.
Recopy the graph from part (a) and indicate the number of workers suffer due to the minimum wage. Explain how they suffer.
1. the greatest portion of the budget of state and local governments is spent ona schools.b entitlements such as
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Identify the three key facts about short-run economic fluctuations and how the economy in the short run differs from the economy in the long run.
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Assuming that labor is the only variable input in the short run, draw a typically shaped marginal product cuve for labor. Explain why the curve looks like this. Identify the point where the law of Diminishing returns sets in.
One might expect the price of a tent to reflect various characteristics; for example, we might expect larger tents to cost more, all else equal.
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