This week we are going to examine what happens in a market when the government intervenes in the market and introduces price controls. In particular we are going to examine what happens when the minimum wage is increased. A minimum wage is a Price Floor. When a price floor is imposed on a market the price can be higher than the price floor, but not lower than the price floor. In the labor market, the price is the wage rate. Thus, a minimum wage above the equilibrium wage increases workers wages, but it also decreases the quantity demanded of labor. In particular, it reduces the quantity demanded of unskilled and low skilled labor, especially youth labor. Assignment Summary: View the two videos above and videos 1, 2 and 7 under the YouTube Videos link for the week. You may also wish to view the other videos for a deeper understanding of price controls. Read Chapter 6 in your textbook in careful detail. Pay close attention to the graphs in Figures 1 - 5. Focus on Figure 5 in particular. (The chapter and the figures are the same in both the 7th and the 8th editions of text book).