some question needed help

JulietChen SG

sorry first of all i apologise i dun speak or write good english i started learning english only for 2 years

economy BBA question needed help

" Floor price concept "
Suppose the goverment rause the minimum wage " Floor price " alot . What effect do you see in the workers market ? will employment rise or fall ? do you think emplyers and workers like this policy ?

eagle SG

I forgot a lot of econs le... The question seems like an essay...

I shall give some points that I remember...

Employment? It depends on the demand supply curve of employers. If still below equilibrium point, no effect at all.

If above equilibrium point, this is where the discussion starts. Most likely employment will fall since P increases, demand will decrease. Amount decreased will be dependent on elasticity of demand, and substitutability of workers with machines.

JulietChen SG

thanks for the reply , yah something likethat but i still cant figure out the correct answer for that question .

eagle SG

what u mean by correct answer?

JulietChen SG

which mean i need to get an answer for this assignment this is part of the assigment , so till now i dont know how to answer it

eagle SG

the points I mentioned should satisfy half the question. You need to write more by listing out real life examples and drawing out the curve, showing where the floor pricing lies, the difference in the floor being above or below the equilibrium, etc.

You know the points, you have the info at your hands, you have your notes and textbooks, so why is stopping you from being able to answer?

JulietChen SG

yup i havethe notes but the question is only "Suppose the goverment rause the minimum wage " Floor price " alot . What effect do you see in the workers market ? will employment rise or fall ? do you think emplyers and workers like this policy "?

nothing much given

eagle SG

the notes will of course not give you the answer... It only gives you the concept. It is your job to apply the concepts to this question, bring in real life examples to substantiate your points, and then answer the question.