Equilibrium Wage Rate Micro Economics

Equilibrium Wage Rate Micro Economics  
In the market for unskilled labor, a price floor is set above the equilibrium wage. This price floor is known as the minimum wage. This discussion question has 3 parts. All parts must be answered for full credit. Please remember you must not only answer the question, but respond to other students’ postings. 1 initial post answering the following 2 parts to this discussion question (Refer to Page 114 Fig 5-4): PLEASE SEE FIGURE 5-4 IN ATTACHMENT FOR ASSIGNMENT a) Describe the effect of a price floor in this market as it relates to the quantity demanded and quantity supplied of labor. Be specific as to whether a surplus or shortage of labor results and why. b) If the price floor were eliminated, what would you expect to see occur to the wage rate in this market? Why would economists consider this efficient (recall the definition of equilibrium and efficiency as it relates to the invisible hand)? 2 posts (responses to other students’ postings) addressing the following question in a manner that indicates an educated opinion has been reached: c) Applying the School's Core Value of responsible stewardship to this question, would you consider the minimum wage to fulfill our call to support those that need assistance? What kind of conclusive evidence do we have as to the effects of the minimum wage? Please make reference to the fact that the minimum wage may help some but hurt others, and why