The State of North Yankton's minimum wage is currently $8.50 per hour. Last month the City Council of Ludendorff passed a measure that required "big box" retail stores such as Wal-Mart, Target and the Home Depot to pay all employees at least $15.00 per hour. Mayor Alderney signed the bill into law.

A. How would the imposition of this policy change the number of workers hired by "big box" stores in Ludendorff? How does the price elasticity of the demand for labor influence your answer to this question? Do you think the demand for labor by the "big box" stores in Ludendorff is fairly price elastic or fairly price inelastic? Explain in words and graphically.

B. What impact do you think this policy would have on the price of products at the "big box" stores in Ludendorff and the quantity of products sold? Explain in words and graphically.

C. Given your analysis in parts A & B, what arguments can be made in favor of the increase in the "big box" minimum wage? What arguments can be made against the increase in the "big box" minimum wage? Explain in detail and link your answers to your graphs from parts A & B.