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- Imagine that to preserve the traditional way of life in small fishing villages, at government decides to impose a price floor that will guarantee all fishermen a certain price for their catch. Using the demand and supply framework, predict the effects on the price, quantity demanded, and quantity supplied. With the enactment of this price floor for fish, what are some of the likely unintended consequences in file market? Suggest some policies other than the price floor to make it possible for small fishing villages to continue.What would be a sign of a shortage in financial markets?Does a price ceiling increase the decrease the number of transactions in a market? Why? What about a price floor?
- Under what Circumstances would a minimum wage be a nonbinding price floor? Under what circumstances would a living wage be a binding price floor?Why is a living wage considered a price floor? Does imposing a living wage have the same outcome as a minimum wage?a) Based on economic surplus, explain who gains and who loses in the case of the minimum wage and whether the overall impact for society is positive or negative.
- Next, consider an example of DWL in the labour market. Suppose the demand for labour is given by the fixed gross wage W = $16. The supply is given by W = 0.8L. (a) Illustrate the market geometrically. (b) Calculate the equilibrium amount of labour supplied, and the supplier surplus. (c) Suppose a wage tax that reduces the wage to W = $12 is imposed. By how much is the supplier’s surplus reduced at the new equilibrium?Suppose that the government has been supporting the price of corn. It's free market price is $2.50 per bushel, but the govt. has been setting a support price of $3.50 per bushel. Which of the following are ways that the government might try to reduce the size of the corn surplus? (One or more) A: Decrease the suppport price B: Institute an acreage allotment program C: Decrease demand by taxing corn purchases D: Raise the support price.Read the following extract from a news article and answer the question that follows. “Minister of labour, Thulas Nxesi, has gazetted South Africa’s new minimum wage which will take effect from 1 March 2020.The gazette states that the new national minimum wage is R20.76 – an increase of 3.8%”.Adapted from: https://businesstech.co.za/news/government/374920/6-planned-laws-that-government-has-just-announced-for-south-africa/Accessed: 21/02/2020Provide a discussion on the welfare effect of the above, that illustrates the case for when the above results in unemployment in the market for domestic workers as well as a case for when the above has no effect on the market for domestic workers. Use a diagram to support your discussion.
- Need help asap . Pls be correct The minimum wage regulations does not lead to a increase in the welfare of all the labors in the market. Explain how?7 The Thai government actively intervenes in markets (Nophakhun Limsamarnphun, “Govt ImposesPrice Controls in Response to Complaints,” The Nation, May 12, 2012).a. The government increased the daily minimumwage by 40% to Bt300 (300 bahts ≈ $9.63).Show the effect of a higher minimum wage on the number of workers demanded, the supply of workers, and unemployment if the law is applied to the entire labor market.b. Show how the increase in the minimum wageand higher rental fees at major shopping malls and retail outlets affected the supply curve of ready-to-eat meals. Explain why the equilibrium price of a meal rose to Bt40 from Bt30.c. In response to complaints from citizens abouthigher prices of meals, the government imposed price controls on ten popular meals. Show the effect of these price controls in the market for meals.d. What is the likely effect of the price controls on meals on the labor market?Imagine that to preserve the traditional way oflife in small fishing villages, a government decides toimpose a price floor that will guarantee all fishermen acertain price for their catch.a. Using the demand and supply framework,predict the effects on the price, quantitydemanded, and quantity supplied.b. With the enactment of this price floor for fish,what are some of the likely unintendedconsequences in the market?c. Suggest some policies other than the price floorto make it possible for small fishing villages tocontinue.
