some question needed help

• JulietChen

  22 Aug 07, 00:49

  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

  22 Aug 07, 00:56

  Originally posted by JulietChen:

  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 ?

  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

  22 Aug 07, 00:59

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

  22 Aug 07, 00:59

  Originally posted by JulietChen:

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

  what u mean by correct answer?
• JulietChen

  22 Aug 07, 01:06

  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

  22 Aug 07, 01:11

  Originally posted by JulietChen:

  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

  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

  22 Aug 07, 01:21

  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

  22 Aug 07, 01:24

  Originally posted by JulietChen:

  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

  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.