Lamic2 Essay Example | Topics and Well Written Essays - 1750 words

Lamic2 - Essay Example b. The U.S. Department of Labor provides a comparison of the federal minimum wage and different state minimum wages at Minimum Wage Laws in the States. The U.S. Bureau of Labor Statistics provides updated information on average wages, by state, at 2000 State Occupational Employment and Wage Estimates. Compare the average wages of waiters in Texas, New York, and one state with a minimum wage below the federal level (this will be found in the category "Food Preparation and Serving Related Occupations"). If the minimum wage were to go up by $0.50, where do you think it would have the greatest effect on restaurant costs? on unemployment? What does this tell you about what stage in the business cycle (for example, during a recession or during a boom) an increase in the minimum wage is more likely to be approved? Ans: The average wage of a waiter per hour is $6.66 in Texas, $8.16 in New York, and $7.11 in Wyoming. If the minimum wage were to go up by $0.50, it would have the greatest effec t on the state that offers the lowest minimum wage which is Texas. On the other hand, the increase would have the greatest effect on unemployment on restaurant costs of states whose minimum wage is below the federal level, which, in this case is Wyoming. ... On the other hand, costs for users are usually higher because the supply of contraband substances are usually low. If this substance were legal, producers would incur higher costs and users would enjoy a lower price for it. 2. Lesson 8 3. Graphing the Demand Curve (21 points) Imagine that the owner of your favorite veggie taco stand changes the price of a tacos randomly each day. How many tacos you eat each day depends only on the price that day, not on the previous price or which day it is. You cannot store tacos. Fill out the following demand chart using your own preferences for tacos, that is, if the price is as indicated at left, how many tacos will you buy? Remember, use your own preferences. The answers will depend on how much you like tacos, how hungry you are at lunchtime, and how much money you want to spend for lunch. There is no right or wrong answer. Price of a 4 oz. regular taco How many tacos will you eat at this price? 0.00 Â  3 0.25 Â  2 0.50 Â  2 1.00 Â  1 1.50 à ‚  1 2.00 Â  1 2.50 Â  1 4.00 Â  1 10.00 Â  0 a. Graph your demand function, placing price on the vertical axis. Is your demand for tacos linear? What happens to the relationship as price increases? Ans: The demand for tacos has a more exponential relationship with price, rather than linear. As price increases, demand for tacos approaches zero. b. Is there a positive or negative relationship between price and your demand for tacos? Does the slope get steeper or flatter as price increases more? Ans: There is a negative relationship between price and my demand for tacos. The slope gets steeper as price increases. 4. Choosing Optimal Consumption (28 points) Microeconomics, Chapter 7, Problem