Discuss what economic theory predicts will happen with a minimum wage set above the equilibrium wage rate. Draw a supply and demand graph illustrating the effect of a minimum wage (do not just copy and paste a graph, create your own). Discuss the Efficiency Wage Theory and explain why its predictions are not valid for a minimum wage. Discuss what elasticity conditions (labor demand/supply perfectly elastic, elastic, unitary elastic, inelastic, or perfectly inelastic) would be needed for the minimum wage to benefit low-income workers. Adhere to the following standards: Your paper should be 3-4 pages in length, not including the title or references pages. Include at least 3 scholarly references.
