Thread: can anybody help me with a macro economics question?

If the market equilibrium wage is $6.00/hr and the Federal Minimum
Wage increases to $7.25; demonstrate the anticipated outcome with the aid
of a Supply and Demand curve.

im not sure if im doing this right, but i would draw a graph showing the equilibrium at $6.00 because the wage goes up, then my new quantity would shift to the left. right but i feel as though im missing something...thanks in advance

There aren't that many moving parts in this economy.

Price goes up.
Supply shifts left.

What might you be missing? Labor?

ok well your right there arent many working parts to the problem. so for the sketch i showed basically that my minimum wage was changed to 7.25/hr which created a floor, and that there was a surplus of people who wanted to work. im not sure if i am correct of this assumption, but i argued that due to the floor, there was some dead weight loss? and i basically shaded in the region to show that. i dont have access to a scanner as of yet so i wont be able to post the problem. i was also wondering if there might be some consumer surplus. well i came across this webpage and i was wondering if this might apply to my scenario or problem. www.macalester.edu/courses/econ119/robertson/c119f06h3s.doc

thanks in advance.