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Price Controls and Equilibrium: The issue of price setting and price controls is great political and social as well as economic interest; it's often very hard to separate these dimensions. Consider an article that deals with the always hot topic of the minimum wage law. This is an area of great political, social, and economic interest, and it illustrates the difficulty in separating these dimensions in real life.
1. In economic terms, what are the market consequences of a price floor? What are the economic implications of implementing a legal mimimum wage.
2. What do the laws of supply and demand predict would be the result of an immediate removal of minimum wage in terms of the price of labor and the quantity available?
3. Should the minimum wage be raised in order to provide workers with a better standard of living? Why or Why not?
4. Is the minimum wage law an effective poverty-fighting measure? What is one alternative policy.
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Mutual fund's net asset is $50, but the amount charges, but the amount charges an exit fee of one percent of net asset value and a load fee of 4 percent of net asset value.
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Auto Parts sells 1,200 electric parts per week and then reorders another 1,200 parts. If the relevant carrying cost per electric part is $4 and the fixed order cost is $750,
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