¶ … employer's point-of-view, low-wage workers are effectively 'disposable' commodities -- for the most part, these can be easily replaced, because their jobs do not require much additional training. Without a minimum wage, employers have a greater incentive to hire more workers for very low pay. Also, if they hire many low-wage workers part-time rather than full-time, they do not have the additional costs of having to pay these part-time employees costly benefits. Elasticity of supply also has a substantial impact upon the labor market. When supply is low, the minimum wage is less significant, because even low-wage workers can pick and choose what are the most desirable positions. However, when this is not the case, in the absence of the minimum wage, wages will plummet because of increased competition for available jobs. Q2. Elasticity of supply is defined as "the rate of response of quantity demand due to a price change" (Moffat, 2012, Price elasticity of supply). Elasticity of supply becomes far greater as time goes on. In the short-term, a rapid response by producers is nearly impossible to a sharp shift in price. However, if prices are going up, manufacturers...
A perfectly elastic supply curve, like a perfectly elastic demand cure is "horizontal, perfectly horizontal, with absolutely no slope" (Perfectly elastic, 2013, Amos Web). A perfectly elastic supply is "a good has a large number of very, very, very close (as in perfect) substitutes-in-production readily available. Any quantity of the good can be produced at the same production cost and price because the productive resources can be easily (as in perfectly) switched back and forth between other goods" (Perfectly elastic, 2013, Amos Web). Given that there is "no increasing opportunity cost. [And] There are no economies of scale," when perfectly elastic, producers can easily raise the amount they produce to meet a greater customer willingness to pay more (Perfectly elastic, 2013, Amos Web).
U.S. Business Environment in the Next Decade and Implications for Business and Households. Over the last decade, the U.S. economy has been undergoing tremendous challenges. This is because the lingering recession and slow recovery have left the unemployment rate high. Evidence of this can be seen in figures from the Bureau of Labor statistics between 2008 and 2012 (which is illustrated in the below table). US Unemployment Rate from 2008 to
Race and Gender Discrimination Multicultural Diversity Sex Discrimination Age Discrimination This paper discusses literature regarding the Equal Employment Opportunity Act which helps protect both applicants and employees from being discriminated against on the basis of their race, religion, age, sex, gender or disabilities. It also discusses and explores the roles of the Equal Employment Opportunity Commission, which is a federal agency that investigates and enforces the laws that were enacted from the EEOA. This
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