According to the economic models of supply and demand, a minimum wage (price floor) set above the equilibrium wage rate will result in unemployment (see page 106-109 of the textbook). However most states including Michigan and the Federal Government ($7.25/hour) have established minimum wage laws. Will these wage floors create asurplus supply and lower demand?

Many States and cities are raising their minimum wage up to $15/hour or more.

Wages are impacted by the supply of and demand for labor. A minimum wage sets a wage floor that may create an imbalance between supply and demand. have we seen this in the places with high minimum wage laws?

The COVID-19 pandemic eliminated many jobs. The most affected were jobs at the lower end of the wage scale. With the economy reopening employers are finding it difficult to attract enough candidates for the jobs that they have. the labor market has shifted

Many businesses shut down and worker were layed off during the pandemic. The government providedextra funds to support those workers.

Will wages be enough to attract the workers needed back to the job? Will employers need to increase wages to attract enough workers? Are other factors like safety, benefits like healthcare and childcare also important? Has this changed the model where wages are the only thing that directly affect the supply of workers

What do you need besides wages to keep you on the job? With more jobs openings and thus more opportunities to move to a better job, is that enough of a incentive to move?

Do we need a new model that incorporates other factors to attract workers?