For this assignment, write a paper evaluating the proposed
increase in the federal minimum wage
to $15 per hour from the current $7.25 for United States
companies classified as small (500
employees or less). The goal of this assignment is to
demonstrate mastery of the theories
(sustainability model and the model of supply and demand)
learned as well as to contemplate
why empirical evidence may contradict economic
predictions. Be sure to cover the
following
points in your paper:
Use the supply and demand analysis to evaluate the potential
impact of raising the federal
minimum wage to $15 ($15/hour). Note that a minimum wage is
a price floor. Your task is to
demonstrate (incorporating supply and demand curves using
Excel in your paper) the immediate
effect of an increased minimum wage; and then discuss, in
detail, the potential long-term
consequences of the increased salary for the companies.
Evaluate the impact that an increased minimum wage may have
on the cost functions of
organizations that mostly hire low skilled workers (e.g.,
fast food) and the impact that a
minimum wage may have on the cost functions of organizations
that only employ skilled
workers (assume skilled workers seek a similar rise in wages
to maintain existing wage
differential).
2
Discuss the effect that an increased minimum wage to $15
will have on labor supply.
Evaluate whether a relationship exists between the
introduction of robotics and kiosks into fast
food companies and the increases in minimum wages passed in
states such as Washington and
New York.
Length: 4-6 pages, not including title page and references
References: Include a minimum of 3 scholarly resources.
Your assignment should demonstrate thoughtful consideration
of the ideas and concepts that are
presented in the course and provide new thoughts and
insights relating directly to this topic. Your
response should reflect college-level writing and APA
standards.
