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Answer: A minimum wage is an example of a price floor, it is a government regulation that makes hiring labour services for less than a specified wage illegal such that an employee cannot give a wage lower to the level defined. A minimum wage is not binding if set at an equilibrium position but is considered to be binding if it is set above the “equilibrium wage”. The uncertainty is only driven by the minimum wage policy ...Read More
Answer: Introduction This study is aimed at establishing how the Australian economy was impacted by the 2008 GFC and how it responded to put the situation under control. This crises was noted to have significant negative impact on nearly all economies in the whole world. Many nations went into a recession and recorded a significant fall in GDP and unemployment rose. Productivity on nearly all economies was greatly discouraged. The increased l...Read More
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Answer: Introduction: The figure above demonstrates the market for Uber rides. The demand function of rides is given as DD. The corresponding supply function of rides is given by the upward sloping line SS. After storms, lack of subways become troublesome for people. People prefer to switch to car services to escape from storm ravaged areas (Chen, 2012). This increases the demand for Uber rides shifting the demand curve to the right to ...Read More
Answer 1. (a) Definition One of the key features of perfectly competitive firms is that they are price takers and not price makers. This happens due to primarily two reasons. One of these is because of the small size of all the producers due to which no firm has the ability to influence the industry by the underlying economic decisions it makes. This prevents any particular firm from bringing changes in the price. The second reason is that th...Read More
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