So, the past few years have seen quite a bit of talk about a $15/hour minimum wage. New President Joe Biden is making that a reality.

1) Assuming a market equilibrium wage of $10/hour, and the x-axis represents the number of workers (quantity) who will work at a given wage of x dollars/hour...

a) Is the new, government-mandated wage a price ceiling, or a price floor?

b) Illustrate this scenario on a demand/supply chart

c) What is the end result of this scenario (surplus/shortage, and of what?) ?

2) Again, given the government-mandated hourly wage, illustrate on a demand/supply chart the effect this will have on supply.

a) Supply increase or decrease and the determinant that brought about the change?

b) Chart it (remember to include all necessary components of your chart).

c) Price increase or decrease?

d) Quantity increase or decrease?

3) Compose a summary of the effects of a minimum wage increase from $7.25/hour to $15/hour on workers and the products they produce.