Call me back
Get 24/7 Live Support chat off
← Human Resources (HRM) Life at the Bottom by Theodore Dalrymple →

Custom Microeconomics Study essay paper writing service

Buy Microeconomics Study essay paper online


Live Chat

Microeconomics is a branch of economics that refers to the study of how individuals, firms and households make decisions about allocation of limited resources as especially witnessed in the markets where there is sale of goods and services. In economics, elasticity is what economics understands as the responsiveness of demand and supply in response to price and income changes. The minimum wage is a law which targets to bar the workers who contribute less than $7.25 from participating in the labor market (Greenhouse, 2007). The aim of this essay paper is to identify the elastic condition which can actually translate to the decrease in employment for workers who earn less than the new increased minimum wage.

A critical value of elasticity of labor demand exists where low-pay wokers are made better off when the elasticities are higher by the increase in the minimum wage rate. Unfortunately, this critical value decreases with benefits from unemployment. It is shown that workers would gain when the minimum wage is increased with some benefit levels of unemployment. The need of raising the minimum wage with an aim of improving the low-wage workers’ welfare is closely connected with their labor’s inelasticity.  Thus, if there is more labor elastic demand, a minimum wage rate increase will make workers better off than in the critical value. This proves that the labor demand’s elasticity decreases with unemployment benefit (Danziger, 2007).

Limited Time Offer

15% OFF

your first order

As the minimum wages are increased, there is a subsequent fall in the demand for labor. This is because the firm will not make profits if it employs many people. Therefore, a rise in the minimum wage will leead to increase in the labor supply since people are attracted back to work. The elasticity of demand and supply curves showing for changes that occur in labor will determine the amount of unemployment.  When the demand for labor is constant, higher labor supply and the prices are kept high, then only the skilled benefit from employment opportunities leading to crowding of least skilled labor market, hence unemployment (Biz/ed, n.d.).


Limited Time Offer


20% OFF

with discount code:

There is a close relationship between an increase in the low-wage works rates, employment and elasticity conditions. Increasing the wages of workers results under decreased labor elasticity demand actually causes unemployment. Therefore, in my opinion, there should be no raising the wages, for the reason of preventing unemployment and also reducing unemployment costs.

Buy Microeconomics Study essay paper online

Buy essayHesitating

Related essays

  1. Life at the Bottom by Theodore Dalrymple
  2. Two Bronze Vessels from China
  3. Combat Roles for Women Will Strengthen the Military
  4. Assessment for Work Placement
  5. How Your College Education Could Be Considered an Investment in Human Capital
  6. Human Resources (HRM)
  7. Research Assignment about Hostess Brand
  8. Leadership Analysis
  9. Brown v. Directors of Topeka Education Board
  10. Impact of Government Policy on Family and Marriage
What our customers say?

15% off your first custom essay order

Order now

from $12.99/PAGE

Chat live with an expert