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Hello can you please help me with these questions.. will appreciate your help.

Chapter 6 Homework (SHOW YOUR WORK) As of January 1st of this year, several states raised the minimum wages within those states. should it be…

Hello can you please help me with these questions.. will appreciate your help.

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Chapter 6 Homework (SHOW YOUR WORK)
As of January 1
st
of this year, several states raised the minimum wages within
those states. Read the
three brief attached articles and based on the textbook
and whatever other information you may know
regarding the minimum wage,
present your position on the federal minimum wage ($7.25): should it be
eliminated, increased (if so, by how much) or should it remain the same, and
explain why you believe so.
1.
As the price elasticity of demand decreases (becomes more inelastic), the size of the price increase
resulting from a tax (
goes up or goes down?
) and the share of the tax borne by consumers (
goes up or
goes down?
).
2.
Consider the market for haircuts in a city.
In the market equilibrium, the price per haircut is $6 and the
quantity is 240 haircuts per day.
For consumers, each $1 increase in price decreases the quantity
demanded by 20 haircuts.
For producers, each $1 increase in price increases the quantity supplied by 60
haircuts.
In the market equilibrium, there are 24 barbers, each of whom producers 10 haircuts per day.
Suppose the city passes a law requiring all barbers to have a license and then issues only 18 barber
licenses.
Each licensed barber continues to provide 10 haircuts per day.
Figure out (a graph would help)
the effects of licensing on (a) the price of haircuts, and (b) the total surplus in the haircut market. (Hint:
remember the section of Chapter 6 on quotas.)

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