Compare and contrast the effects of a living wage policy set in a labor market where the demand for workers is relatively price in elastic and one where it is relatively price elastic. Graph and explain results

in n 1973 paper ntitled "A Living Wage,\" published in Annals ofthe American Academy of Political and Social Science (vol. 409: 3341]. Daniel R. W from the Department of Economics at the University of Michigan makes the following statement: "The only effective way to eliminate poverty in the United States is to pay all workers a living wage. glgpggs Working people labor in jobs in which earnings are inadequate to meet even the poverty standards of income, their families will remain poor,- zrthennore. their poverty will be reproduced from one generation to the next Our society will continue to suffer from all of the ills associated with poverty: disease, degradation, crime, hostility and anger." (p. 35] This essay is a normative assessment of the living (or minimum] wage. In your short-answer essay, include the following elements: a. What is the purpose of a living wage? b. Compare and contrast the effects ofa living-wage policy set in a labor market where the demand for workers is relatively price inelastic and one where it is relatively price elastic. Graph and explain your results