Answer to Question #104536 in Finance for Zymir woodard

Question

If the minimum wage were increased to $20 per hour, how many of your classmates do you think would look for a job? How many jobs do you expect they would find? How is this an example of a price floor?

Answer 1

A very interesting list of questions is presented. We calculate how much you can earn on average with such a minimum wage: $ 20 * 8 = $ 160 per day, $ 160 * 22 = $ 3,520 per month. Yes, compared to $ 7.25, this is a significant increase! Almost 3 times. Yes, probably, many classmates rush to look for such a job, but not everyone would be suitable for such a position. Maybe I would also find a couple of places. This may be an example of a price minimum, but inflation and prices for goods and services would be appropriate, i.e. increased.

At this point (2020), the minimum wage in the US is $ 7.25 per hour.