Learning Journal Unit 3
BUS1103- Microeconomics
University of People
Lubowa Muhammadi
Dr. Thierry Belinga
Thursday, 30 June 2022
Article and summary
An article, LA´s new minimum wage be raised to $16.04, starting July 1, written by
Chelsea Hylton, and published on June 28, 2022, BY NBC. The article discusses how LA´s
minimum wage has been increasing over the years and the reasons behind the rise, such as the
growing economy, housing costs and the consumer price index. Attached is the link for the
article https://www.nbclosangeles.com/news/local/la-los-angeles-new-minimum-wage-july1/2925728/ (Hylton, 2022)
How has the minimum wages or rent controls effected the economy of the country?
The minimum wages affect Uganda´s economy since there is deficiency of workers since
they are not happy with minimum wage according to the number of hours they work and the
debilitating work they do. Economists argue that an increase in minimum wages would decrease
government spending abroad and benefit the economy. It could also increase community-level
economic activities, which somewhat will influence local businesses growth. Finally, in my
opinion it could reduce on income inequality.
Explain what the minimum wage is an example of, explain what rent controls an example is of
Rent controls are example of ceiling floor while minimum wage is an example of price
floor.
As per Price ceilings and floors (n.d.), price ceilings keep a cost from transcending a
specific level. At the point when a price ceiling is set beneath the equilibrium price, the quantity
demanded will surpass the quantity supplied, and an overabundance demand or deficiencies will
result.
Price floors keep a price from falling under a specific level. At the point when a price
floor is set over the equilibrium price, the quantity supplied will surpass the quantity demanded,
and an abundance of supply or excesses will result (Khan Academy , s.f.).
Should government be involved in establishing laws for setting the minimum wages or rent
controls?
Indeed, I feel that states ought to get involved while laying out regulations to set least
wages or lease control, since, in such a case that they don't, anybody would settle all alone, and
residents will likely be impacted. For instance, assuming there were no lowest pay permitted by
law or lease control that we are legally necessary to follow, odds are a few landowners or
businesses would exploit this.
References
Hylton, C. (2022, June 28). LA's New Minimum Wage Will Be Raised to $16.04, Starting July 1.
From https://www.nbclosangeles.com/news/local/la-los-angeles-new-minimum-wagejuly-1/2925728/
Khan Academy . (n.d.). Price Ceiling and Price floors . From
https://www.khanacademy.org/economics-finance-domain/microeconomics/consumerproducer-surplus/deadweight-loss-tutorial/a/price-ceilings-and-price-floors-cnx