#3 Minimum Wage

Minimum Wage

I agree with minimum wage, yet I believe it should be raised. I believe that if we raised minimum wage to $9.50 or $10.00 a hour we could help the market with inflation and provide more money to the people in poverty. The only problem with rising minimum wage is that small businesses could be hurt in the processes. In my opinion the government should raise minimum wage and create small business tax relief to help small businesses work force. I believe that by increasing minimum wage we would help the market. For example, people who live in poverty don't have extra money to purchase items such as extra shirts and shoes. By having them make more a hour they would have more money to spend on items such as clothes. It's a win win situation!

#2 Price Floors

Price Floors

   I disagree as well with price floors. There are many flaws with price floors; One example is consumers don't buy as much of a product because of its higher costs, yet suppliers produce more of the product however because they are selling it for more money. This creates a surplus in supply. In my opinion price floor hurts society more then it helps. Price floors may help out a handfull of farmers and people being payed minimum wage, yet it only helps those people by hurting everyone else! I would only make exceptions for price floors on goods such as alcohol, if it was sold for more money then less people would be able to purchase it. Based on market equilibrium I would oppose the imposition of price floors on any goods or services in our market economy, It creates too much of a market surplus and causes society to loose money. 

#1 Price Ceilings

Opinion on Price Control 

   My opinion is that the government shouldn't be able to put price ceilings on goods and services in our market. There are many reasons I disagree: price ceilings can cause suppliers to drop out of the market causing a reduce in supply, it can also strengthen use of the black market, and many times it discriminates against people.
    Having price ceilings can cause a shortage of goods in multiple ways. It can cause suppliers to drop out of the market because of shortage of profit, yet also sell-out the object because of its price. For example, if Starbucks had a price ceiling on their coffee of 25 cents per cup the coffee would be sold out almost immediately; there would be a shortage in supply.
   Price ceiling can cause discrimination against citizens. For example, if there was a price ceiling on the cost of apartments and there were many people applying the owner of the complex could pick and choose the people he would like to live there.
  I believe that price ceilings on our market economy cause shortage in many goods, causing a unbalanced market equilibrium. There would be a high demand for the goods sold but not enough supply.

Supply!

NOT DONE.

Demand Wrap-Up

Subsitutes- Reflection

Substitutes!

My mother is very frugal;  I admire her because if there is something of a utility that she needs she finds a way to get the item, or she gets a substitute. For example the other day, corn prices rose incredibly so instead she bought pea's because they were on sale. She has taught me many ways of saving money, which is convenient because I have to pay for everything myself. When I go shopping for clothing I try to buy items on sale, however, many times I go home with nothing because everything is overpriced! I have discovered I can substitute buying clothing at mall, and go to thrift stores instead. Jackets are a utility in Oregon, especially in the winter season. Buying at a thrift store provides cheap slightly used clothes for a lot less money!

Another thing that I realized this chapter in Econ was that many of the things I have are elastic. I don't need a coffee everyday or another pair of shoes to add to my collection. Many things I own ARE elastic, and I don't have many things that are inelastic. My mother; however, requires medicine from her doctor. It's a necessity so my family will buy it no matter the costs. It is the same for diabetics who need INsulin to survive. It's INelastic.

QUESTION: Do you think gas and other inelastic companys abuse their control because what they have we need? 

Inelastic Vs. Elastic, Total Revenue Charts

Newspaper Headlines

Newspaper Headlines

1. Complementary: Oprah's seen eating Doritos, Sales Rise!
2. Substitute: Outbreak of E coli in dairy products, people choose Soy milk instead!
3. Elastic Demand: Soda Prices Double! Consumers have cut down on buying!
4. Inelastic Demand: Medicine prices rise, angry patients buy belligerently! (News Article below, PG.1)

Medicine Prices Rise!

      Medicine has rose 35% in the last two weeks! Angry protesters are still buying the medicine because its a inelastic demand, but at the same time they aren't happy about it. Sarah Lanka a angry patient to Kaiser Family Hospital stated, "I hate that medicine prices are rising so high! My son needs antibiotics for the fever he is having yet its taking so much of my paycheck! I worry that I may not be able to pay rent this month." We interviewed the lead doctor on the floor, Dr. Canahan he said with all sorrow, “I feel so bad that prices have rose, but there is nothing we can do about it. I can’t say with the strength that the prices on medicine will not rise more!” There has been a increase in virus’s across the nation because people can’t afford antibiotic medicine to treat the virus they have. Its become a major issue in todays society. Especially if the prices keep increasing! The president only words on the topic, “I know the difficulty we are facing with the rising costs of medicine, insurance is paying for as much as they can and clinics have opened with lower costs of medicine to try to get everyone virus free. We are doing the best we can.”

Demand Schedule

A object example of my Demand Schedule is Kettle Corn!

url:http://www.popcornzone.com/shop/image.php?productid=16503