Reference no: EM132460885

1. Your friend Alex calls and invites you to the Dallas Mavericks game this weekend. You would like to go, but you are scheduled to work at Walgreens from 6pm until 10pm that night where you make $12/hour. Provide a simulated cost summary for attending the game, and provide your decision to attend or not and the rationale for the decision. (15 points)

2. Seattle has voted to raise the minimum wage to $15/hour.

a. Diagram the implication of this action

b. Provide an explanation of the potential results of this action. (10 points)

3. Given the following demand and supply data for cowboy hats, answer the questions below:

Q Demand     P               Q Supply

200                 400                 600

300                 300                 500

400                 200                 400

500                 100                 300

A. At what price is the market in equilibrium?

B. At P=400, are there more or less hat in the market than the equilibrium P?

C. At P=400, is there a shortage in the market? If not what is the term that would be used?

D. There is a price ceiling implemented at P=100. Describe what happens and use a simple chart to help do so.