ECON 2000 1st Edition Lecture 10Outline of Last Lecture XXVII. Types of Profita. Consumer’s Surplusb. Producer’s Surplusc. Total SurplusXXVIII. Graphed Surplusa. Consumer Surplusb. Producer SurplusXXIX. Price Floorsa. Only Can be set by Govtb. Definitionc. Binding/EffectiveOutline of Current Lecture XXX. Minimum Wage Lawsa. Why is it establishedb. Effects of the price floorc. Pros for no minimal waged. Pros for minimum wageCurrent LectureXXX. Minimum Wage Lawsa. Why is it establishedi. Protect Workersb. Effects of the price floorii. Creates a market surplus on laborc. Pros for no minimal wage1. Allows markets to reach equilibriuma. Allows Total Surplus to maximize2. Lower unemployment ratesa. Employees are generating same source of incomeb. Value: Full employment of resources3. Keeps prices of goods and services low4. Help those individuals who need experiences/ a chanceThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.a. Job is a stepping stoneb. Value: equal opportunity5. Firm may use savings on wages for better benefits for employees6. May keep firms from out sourcing labor and/or replacing labor with machinesd. Pros for minimum wage1. For those who have jobs, the y are brought out of poverty a. Avoid working poorb. Value: Equality of Opportunity2. Allows employees comfort knowing their wages cannot fall below minimum wagec. Value: Security3. Firm will keep/ hire most qualifiedd. Values: Competition and Efficiency4. Higher prices of goods and services (resulting from the implementation of minimum wage) Cause quantity supplied to increase.e. As this happens, firms may need/ want to hire more workersf. IF this allows for greater efficiency, firms may save $ elsewhere, which can be
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