Supply-Demand Curves and the Importance of the Ceteris Paribus Assumption

A timely blogpost:

https://uneasymoney.com/2019/03/22/james-buchanan-calling-the-kettle-black/

“Demand is a function of many variables of which price is only one. So the inverse relationship between price and quantity demanded is premised on the assumption that all the other variables affecting demand are held (at least approximately) constant.”

APPLICATION: The Minimum Wage Debate Controversy:

An excellent primer on the minimum wage debate:
http://www.anderson.ucla.edu/faculty-and-research/anderson-review/minimum-wage-primer-leamer

The Economist on the minimum wage debate:

https://www.economist.com/finance-and-economics/2017/07/08/economists-argue-about-minimum-wages

The Rigged Labor Market by Alan Krueger

http://www.milkenreview.org/articles/the-rigged-labor-market

Economists in support of a federal minimum wage of $15 by 2024

https://www.epi.org/economists-in-support-of-15-by-2024/ 

The Pro-Growth Minimum Wage by ROBERT ATKINSON

https://democracyjournal.org/magazine/49/the-pro-growth-minimum-wage/

“When the price of labor is high, the return on investment from labor-saving technology is increased because such an investment saves the firm more. This exemplifies the “Webb effect”—the theory that a higher wage floor leads to higher levels of efficiency.”

A Threat, Not a Theory by NICK HANAUER

https://democracyjournal.org/magazine/41/a-threat-not-a-theory/