Supply and Demand Analysis?

Question

Rosa has been thinking about hiring a couple of semi skilled teenage workers for her dress shop, but she's faced with a dilemma: California just passed and the governator has signed a law raising minnimum wages to $7.75 per hour. Let's assume she has twenty applications but she can only hire 5. Illustrate roses problem using supply and demand analysis. Where might she find the most contentment.

Answer 1

Is this really a supply and demand problem? In a free economy, with four times the applicants that she could hire, and her only thinking about hiring "a couple", she could offer the job at a lower wage and find out who's willing to work at that rate. But she cannot, by law.

Supply/demand usually applies to Macroeconomics--prices of goods, and perhaps wages over an entire market in society. But this is ONE business owner, so it's a microeconomics matter. What can she afford to pay?

And..."Where might she find the most 'contentment' is a strange choice of words. "Contentment" is not the right term, not even an economics term.

Answer 2

If the warning works because of fact those shoppers in no way subject approximately something and of path call for curve shifts downwards. the availability additionally comes down and the recent equilibrium is wide-unfold at a decrease element and the cost of the cigarettes additionally comes down and the quantity produced will additionally adjustments or that's lesser than the formerly. yet often the call for would be relatively inelastic to the cost call for and for this reason right here the call for comes to a decision on the cost of the cigarette because of fact the availability is likewise respond to this and for this reason the cost would be settled at an stronger under the equilibrium fee of the previous one.