Discuss the type of price control that a government would implement if it wishes to impose a national minimum wage. Include in your answer the economic effects of such a price control. Motivate your answer with the aid of a diagram.

The City Council of Lincoln, Nebraska has proposed raising the minimum wage in their city up to $12.50 per hour up from the current level of $9.50. They are not sure what to do because they want people to make more money but they also want as many people as possible to have jobs. They are asking you to analyze the situation using the chart below and tell them what you think will happen if they go through with it and actually raise it to $12.50 per hour. $16.00 23,000 32,000 9,000 $12.50 $9.50 $7.50 42,000 74,000 At a Minimum Wage of $12.50 per hour what is the level of Excess Supply of Workers willing to work at that wage? 74,000 0 ↑ 51,000 quantity

Under rent control, bribery is a potential mechanism to force the total price of an apartment (including the bribe) to be less than the market price. allocate housing to the most deserving tenants. allocate housing to the poorest individuals in the market. bring the total price of an apartment (including the bribe) closer to the equilibrium price.

Question Price controls are set on infant formula. Calculate the shortage caused by the price ceiling. Price PE = $40 Pc = 515 Market for Infant Formula Q5 = 100 QE= 700 QD=1300 Price Ceiling D Quantity (thousands of cans)