This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: What are the effects of a minimum wage set below the equilibrium wage? What will be an ideal ... (Read 184 times)

newbem

  • Hero Member
  • *****
  • Posts: 579
on: Jun 29, 2018
What are the effects of a minimum wage set below the equilibrium wage?
 
  What will be an ideal response?

Question 2

Why is it a bad business practice to assume that raising prices will lead to increases in total revenue?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

yuyiding

  • Sr. Member
  • ****
  • Posts: 357
Reply #1 on: Jun 29, 2018
Answer to Question 1

If the minimum wage is set below the equilibrium wage, then the law has no impact on the labor market equilibrium wage and quantity.

Answer to Question 2

The reason is that revenue could move in either direction. What is crucial in determining whether it will rise or fall is dependent upon the elasticity of demand at the point where price is increased.


newbem

  • Member
  • Posts: 579
Reply 2 on: Jun 29, 2018
Excellent

chjcharjto14

  • Member
  • Posts: 342
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Cytomegalovirus affects nearly the same amount of newborns every year as Down syndrome.

Did you know?

Green tea is able to stop the scent of garlic or onion from causing bad breath.

Did you know?

An identified risk factor for osteoporosis is the intake of excessive amounts of vitamin A. Dietary intake of approximately double the recommended daily amount of vitamin A, by women, has been shown to reduce bone mineral density and increase the chances for hip fractures compared with women who consumed the recommended daily amount (or less) of vitamin A.

Did you know?

The training of an anesthesiologist typically requires four years of college, 4 years of medical school, 1 year of internship, and 3 years of residency.

Did you know?

Nearly all drugs pass into human breast milk. How often a drug is taken influences the amount of drug that will pass into the milk. Medications taken 30 to 60 minutes before breastfeeding are likely to be at peak blood levels when the baby is nursing.

Effects of Carotid Stents Effects of Carotid Stents
Prolonged abuse leads to production of stress hormones that can lead to a cascade of effects ... Prolonged abuse leads to production of stress hormones that can lead to a cascade of effects ...
The effects of neonatal testosterone exposure on the size of the sexually dimorphic nuclei in male ... The effects of neonatal testosterone exposure on the size of the sexually dimorphic nuclei in male ...
Summary of the Effects of Massage Cont. Summary of the Effects of Massage Cont.
Placebo Effects and Viagra Placebo Effects and Viagra
Write equilibrium constant expressions for the following reactions in terms of concentration: Write equilibrium constant expressions for the following reactions in terms of concentration:
Video: Proteins

For a complete list of videos, visit our video library