Let’s connect the minimum wage model back to the supply an deman model of Chapter 8. Is a minimum wage a price ceiling or a price floor? Does it create a surplus or a shortage in the labor market? ...

Let’s connect the minimum wage model back to the supply an deman model of Chapter 8. Is a minimum wage a price ceiling or a price floor? Does it create a surplus or a shortage in the labor market?  Who is more likely to ask politicians for stronger labor unions an laws, making it harder to fire workers: insiders who have jobs or outsiders who don’t have jobs?