Prior to beginning work on this discussion, read Jared Bernsteinâ€™s article, Amazonâ€™s Raise: Unequivocally Good News (Links to an external site.).
Based on the articleâ€™s information and Chapter 12 in your textbook, respond to the following:
- Why is the demand for labor called a derived demand?
- In the labor market, what are the firmâ€™s demand curve for labor and the workersâ€™ supply curve of labor?
- How is a firmâ€™s wage normally determined in the labor market?
- How could Amazon decide to raise its minimum wage to $15 per hour, despite the federal minimum wage being fixed at $7.25 per hour?
- What are positive and negative effects of Amazon raising its minimum wage to $15 per hour on its employees, total revenue, and other companies and their employees?
Your initial post should be a minimum of 300 words.