Principles of Microeconomics

 

 

 

Based on the video The minimum wage: does it hurt workers? by The
Economist (https://www.youtube.com/watch?v=8H4yp8Fbi-Y) and what was
taught in the lecture, discuss the arguments for and against a minimum wage.
In particular, consider the following aspects:
What does the (neo-)classical theory of demand and supply tell us about
a (binding) price floor on wages?
How does the elasticity of labor demand affects the unemployment rate
under a minimum wage?
What are the empirical findings by David Card and Alan Krueger? How
is this different from the standard prediction of neoclassical theory?
How does the theory of Monois explain those findings?
How did the two studies on the Seattle minimum wage rise in 2015 give
seemingly contradictory results?
Assume you are working as a waiter/waitress in a restaurant. How would
you feel about the minimum wage?

 

 

 

 

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