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1. Draw labor supply and demand curves for cashiers in Hadley supermarkets.
a. Show the effect of a rise in the minimum wage to above the current wage rate.
b. Do you anticipate large employment gains or losses?
c. Show the area of wages (employment times the wage). What happens to this area with the increase in the minimum wage?
d. Would you favor a higher minimum wage?
2. Real World Micro 2.4: Jeannette Wicks-Lim argues that the minimum wage could be raised without causing significant job loss. Why, in her view, would companies pay higher wages without laying off workers? Do you agree with her? Would you favor a higher minimum even if it reduced employment?
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