Income rises at the same time that the minimum wage rises

Assignment Help Business Economics

Reference no: EM131236861

Suppose that pizza is a normal good. Suppose further that all pizza workers earn the minimum wage. What would happen to the equilibrium price and quantity of pizzas sold if income rises at the same time that the minimum wage rises? Explain.

Reference no: EM131236861

Questions Cloud

The mandated percentage of ethanol in gasoline is increased : Consider the market for corn in the United States. Suppose that the mandated percentage of ethanol in gasoline is increased and at the same time a corn blight destroys a significant portion of the corn crop. Using a supply and demand diagram, show wh..

Increase the explanatory power of his demand equation : An MBA student has proposed the following demand equation for good Y. QdY = a + b PY + c M where: QdY = quantity demanded of good Y in millions of tons per year PY = Price of good Y in dollars per ton M = Average consumer income in thousands of dolla..

Find the benefit maximizing level of output : A firm faces the following inverse demand equation for the commodity it produces: P = 100 – Q where P represents the price/unit of the commodity it produces and Q represents the level of output produced. Find the benefit (profit) maximizing level of ..

How much is college education worth : How much is a college education worth? In the text, we supposed a col- lege education raised a person’s wage by $30,000 per year, from $40,000 to $70,000. Assume the interest rate is 3% and there is no growth in wages, then answer the following. Disc..

Income rises at the same time that the minimum wage rises : Suppose that pizza is a normal good. Suppose further that all pizza workers earn the minimum wage. What would happen to the equilibrium price and quantity of pizzas sold if income rises at the same time that the minimum wage rises? Explain.

What is the expected value of five employees you hire : You need to hire some new employees to staff your start-up venture. You know that potential employees are distributed throughout the population as follows, but you can't distinguish among them: What is the expected value of five employees you hire?

Buyer is skeptical of the usefullness of product : Soft selling occurs when a buyer is skeptical of the usefullness of a product and the seller offers to set a price that depends on realized value. For example, suppose you're trying to sell a company a new accounting system that will reduce costs by ..

Explain how the relevant product market : Explain how the relevant product market is typically defined for community hospitals. Why? How is the relevant geographical market defined? Why? Please make this answer approximately 400 words.

Which states could have jurisdiction in this case and state : Lenny was a resident of Maine and Milly was a resident of Arizona. Both went on vacation to Nevada. When on the golf course, Lenny drove the golf car recklessly, hit Milly, breaking her back. Milly suffered damages of $84,000. Indicate which states ..

User Account

All Pages