ECO201 Lecture Notes - Price Floor, Living Wage
Document Summary
4. 1 demand and supply at work in labor market. By the end of this section, you will be able to: predict shifts in demand and supply curves of the labor market, explain the impact of new technology on the demand and supply curves of the labor market. At equilibrium, the quantity supplied, and the quantity demand are equal. In a situation of excess supply in the labor market, with many applicants for every job opening, employers will have an incentive to offer lower wages than they otherwise would have. Price floors in the labor market: living wages and minimum wages. The u. s government sets a minimum wage, a price floor that makes it illegal for an employer to pay employees less than a certain hourly rate. Local political movements in several u. s. cities have pushed for a higher minimum wage, which they call a living wage. 2: explain the role of price ceilings and usury laws in the.
