Adaptive Community for the Continuity of Education and Student Services National Teachers

College

Activity 2
Explain the economic reasoning behind these two newspaper headlines: a. a. “Bountiful
Chicken Eggs harvest is Hurting Raisers”
Assume that “bountiful chicken eggs” represents a rise in supply, and that “hurting”
signifies a decrease in overall revenue from growth. A successful harvest means more
supply, which causes the supply curve to shift to the right. As a result, the price drops
dramatically. The product is many chicken eggs, and the product is harvested by raisers. It
also raises the expense of egg collection, storage, and timely supply for raisers who use
large-scale chicken egg harvesting. Because of the greater frequency, this occurs.
b. “Minimum Wage Increase Costs Jobs”
This means that if there is a minimum wage, job costs will rise. “Costs,” in my opinion, refers to
the value of labor. When we value labor, the number of individuals who demand it rises, resulting
in an increase in job costs. The cost of employing low-paid workers would rise if the minimum
wage was raised. As a result, some firms would hire fewer people than they would if the
minimum wage were lower. However, employment may increase for specific workers or in
certain conditions. The amount of jobless, not merely unemployed, workers would reflect
changes in employment. People who are jobless include both those who have left the labor force.
For example, because they believe there are no jobs available for them and those who are looking
for work. Minimum wages raise labor costs above low-wage workers’ marginal productivity, thus
pricing them out of the market. Other ideas propose that the cost of minimum wages can be
absorbed up to a certain point by a combination of lower wage increases for higher-paid workers,
smaller profit margins, higher productivity, and/or decreased employee turnover. If minimum
wages contribute to increased domestic consumption and aggregate demand, employment may
rise.