Question: 1) Graphically illustrate the minimum wage. Note the deadweight (welfare loss) loss and the loss or redistribution from job search.
2) Assume that you have two periods: 2011 and 2012 for a pickup truck. Price 2011 is $30,000 and price 2012 is $40,000. In 2011 20,000 sold and in 2012 18,000 sold. Calculate the price elasticity of demand. Show work.
3) Graphically illustrate a price ceiling using rent control as your example. Explain the model.