Question
I would like to get help for the following questions. Q.1) Consider the demand for hamburgers. If the price of a substitute good (for example,
I would like to get help for the following questions.
Q.1) Consider the demand for hamburgers. If the price of a substitute good (for example, hot dogs) increases and the price of a complement good (for example, hamburger buns) increases, can you tell for sure what will happen to the demand for hamburgers? Why or why not? Illustrate your answer with a graph.
Q.2) Suppose that a 5% increase in the minimum wage causes a 5% reduction in employment. How would this affect employers and how would it affect workers? In your opinion, would this be a good policy?
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