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Minimum wage a price floor or a price ceiling

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1. Joanne states, "If raising the minimum wage to $10 an hour is good, like Senator Largess suggests, then raising it to $20 an hour would be twice as good." Is the minimum wage a price floor or a price ceiling? Is Joanne correct? Why or why not? Does raising the minimum wage help the poor?

Please respond using economics as your foundation. The response should be between 200 - 300 words.

2. Government programs such as Medicare substantially subsidize health care purchases by some consumers in the U.S. economy. Who benefits from these subsidies? How do they affect the price of health care? If you are not a recipient of this program, are you made better or worse off by the subsidy? Explain.

Reference no: EM131441676

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