Minimum Wage

I think the minimum wage should increase but not so dramatically that it goes all the way to ten dollars. I believe that an increase of that much would scare the suppler of jobs and cause layoffs of the lower class who the increase would be meant to help. I do think the wage must continuously rise with inflation in order to stay competitive and not force people to never stop working.

Price Floor

I agree once again that price floor should be used in the economy just like price ceiling. Some products that a price floor should be put on are tobacco and alcohol. Price floors would rise the price of the product making people desire them less. This could cause a surplus of the supply of the product. The surplus would eventually be compensated for by the producers so they don't keep on losing money on the extra products produced so I believe that the surplus would eventually fix itself.

Price Ceiling

I do agree that price ceilings have a price in our economy. For example I believe during times of gas shortage or rationing price ceilings should be put in place so people can secure these rare goods. The downside of this could be that the product is no longer produced because the producers cannot make money on the product. In the end though I believe that when products are already scarce the price ceiling should be put on them.

Demand Wrap up reflection

Substitutes:
     There is almost a substitute for any product that is produced in America. For example people can drink Shasta Cola or Pepsi instead of Coke-a-Cola. I have recently experienced an example of this in my life. My mom is a pharmacist and she has recently started buying the generic brand of Allegra called Aller-ease. It is the same medicine only a different name.
     Generic brands like this prevents companies from rising prices to unrealistic amounts, along with  many other factors. We also talked about this in class and compared clothing brands in class. Also generally if a product has a lot of substitutes it will generally have a elastic demand. This is because if one company rises the prices too high the customers will simply buy another brand. This is also one of the reasons that capital economies work.



I do wonder what products there are, if any,  that have no substitutes and if their prices are extremely inflated?

Demand Wrap Up

Price $	Demand of a Coffee
$1	150
$2	125
$3	100
$4	75
$5	50
$6	25
$7	0

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Inelastic Vs. elastic

Demand Types

Complimentary: "Firewood supply rots in wet weather, lighter sales plummet"
Substitute: "Nike factory in China explodes, Adidas sales up"
Elastic: "Massive peach harvest, canned peaches being sold by the dozen"
Inelastic: "Nuke price rises to 20 billion dollars each , Iran still plans to continue with nuclear program.

Even though the price of nuclear weaponry is so expensive, Iran still wants the power that a nuke will give it on the world political field. The weapon is said to be wanted simply so Iran will be taken seriously, but U.S. claims it is to hurt innocent civilians. Despite international pressure Iran refuse to budge on this topic and is determined to spend whatever is required to obtain their symbol of power. "WE SHALL NOT WAVER DESPITE THE COST" president imalier shouted to his people in a rally for the new nuclear program early Friday morning.