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Minimum Wage
The minimum wage is a controversial topic. Starting from your textbook and then expanding with additional research:
Discuss what economic theory predicts will happen with a minimum wage set above the equilibrium wage rate.
Draw a supply and demand graph illustrating the effect of a minimum wage (do not just copy and paste a graph, create your own).
Discuss the Efficiency Wage Theory and explain why its predictions are not valid for a minimum wage.
Discuss what elasticity conditions (labor demand/supply perfectly elastic, elastic, unitary elastic, inelastic, or perfectly inelastic) would be needed for the minimum wage to benefit low-income workers.
Adhere to the following standards:
Your paper should be 3-4 pages in length, not including the title or references pages.
Include at least 3 scholarly references.
The Economics Library Guide
(Links to an external site.)
is a good tool to use to start your research (sources such as The Balance, EconomicsHelp.org, Investopedia, and similar websites are not acceptable).
Review the grading rubric for Module 2.
Be sure to follow the CSU Global Writing Center
(Links to an external site.)
for your citations.
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