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For this assignment, write a paper evaluating the proposed increase in the federal minimum wage to $15 per hour from the current $7.25 for United States companies classified as small (500 employees or less). The goal of this assignment is to demonstrate mastery of the theories (sustainability model and the model of supply and demand) learned as well as to contemplate why empirical evidence may contradict economic predictions. Be sure to cover the following points in your paper:
Use the supply and demand analysis to evaluate the potential impact of raising the federal minimum wage to $15 ($15/hour). Note that a minimum wage is a price floor. Your task is to demonstrate (incorporating supply and demand curves using Excel in your paper. The Spotlight on Skills - Excel is located in this week's Books and Resources.) the immediate effect of an increased minimum wage; and then discuss, in detail, the potential long-term consequences of the increased salary for the companies.
Evaluate the impact that an increased minimum wage may have on the cost functions of originations that mostly hire low skilled workers (e.g., fast food) and the impact that a minimum wage may have on the cost functions of organizations that only employ skilled workers (assume skilled workers seek a similar rise in wages to maintain existing wage differential).
Discuss the effect that an increased minimum wage to $15 will have on labor supply (reference).
Evaluate whether a relationship exists between the introduction of robotics and kiosks into fast food companies and the increases in minimum wages passed in states such as Washington and New York.
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