251Ch6lecture2

251Ch6lecture2 - D=firms =MB of hiring labor $7 $5 80 100...

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9/19/2011 1 1 Chapter 6: Government Actions in Markets Lecture 2: Price floors Price Floors • Minimum wage • Agricultural price supports Minimum Wage DWL of Minimum Wage Minimum Wage Summary wage Labor S=households =MC of supplying labor
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Unformatted text preview: D=firms =MB of hiring labor $7 $5 80 100 120 hired DWL Agricultural Price Supports 9/19/2011 2 Agricultural Price Supports $3.50 3 40,000 50,000 60,000 Surplus = 60,000-40,000 DWL S=MC D=MB P Q MC > MB...
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This note was uploaded on 09/21/2011 for the course ECON 251 taught by Professor Blanchard during the Spring '08 term at Purdue.

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251Ch6lecture2 - D=firms =MB of hiring labor $7 $5 80 100...

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