Minimum Wage

I think that the minimum wage is very important. Without it, employers would be taking advantage of their workers or there would not be enough workers. It is needed to keep more people contributing to the economy and keep it flowing. People working low-income jobs still need to find a way to live, and minimum wage helps keep them from poverty. It would be more beneficial if the minimum wage could be raised higher because the current one is barely enough to sustain a family. As the cost of living gets higher, the minimum wage has to also go higher.

Price Floors

I agree that price floors should exist because they would regulate the quality of the products. If the price of the product cannot go below a certain price, then the producers will be more motivated to make them at a better quality. Also, for certain products, people will not buy them if they are too cheap because that can imply that they are bad quality and not worth the price. They will start loosing their true value. Some things that need a price floor are wages, electronics, and other elastic products like jewelry.

Price Ceilings

I agree that our market economy should have price ceiling because it would make the essential products available to more people. If suppliers kept raising the price of some inelastic products, lower-income people would not be able to afford them. Although it does create a shortage of supply, it would still help people acquire the product. Unlike products that need to be managed, the quality of the inelastic products would stay the same no matter the motivation of the producer. Some products that should have price ceilings are gas, electricity, and groceries (milk, bread, vegetables).

Supply

DEMAND

Complements

When my sister and I started swimming, there were a lot of products we had to buy. First, we had to buy swim suits, caps and goggles. Then we had to buy gear bags, equipment, swim bags and more towels. There were many things that were needed just for the one sport. 

These are complementary products because we need all of them to swim. If we buy caps, we will have to buy goggles. Every time we went to the swim store online or the actual shop, we would buy multiple products at a time. 

Hypothetically, can the price of an inelastic product go so high that people will not be able to afford it?

Demand Wrap Up

Elastic and Inelastic Demand

Demand Headlines

1. Complementary Demand: Michael Phelps breaks record of 18 Olympic medals, cap and goggle sales go sky high.
2. Substitute Demand: Android struggles to produce satisfactory products; Apple sales took a jump.
3. Elastic Demand: Macy's prices went through the roof, their profits took a plunge.
4. Inelastic Demand: Potato prices reach $8.00 a pound, customers confused and upset but still pile them up.

Potato buyers all around the U.S. are upset at the direction that potato prices are going.
           "Potatoes are a huge part of our diet and lives", says one customer. This has never happened before, so people don't know what to do. They just keep on buying the same amount they usually do, but are angry at the amount they are spending.
           "We can't live without potatoes. If I bought one less potato, my whole family will starve", complains another customer. This new jump in prices is due to the decreasing number of potato farmers in the U.S. Farmers are moving onto other crops, like carrots and cabbage. If they keep moving away from potato farming, they will have the whole country in a revolution. All for the laziness of a couple hundred farmers. It will be hard to convince the public to move on to something else to supplement their diet.

Price Effect of a candy bar