Question 1
Laws setting minimum wage and maximum rent are established to guarantee the citizens a minimum standard of living by preventing exploitation by the landlords and employees (Gorman, 2015). Low wages result in reduced standards of living of the employees and higher rents above the maximum increase cost of living thus reducing the standards of living. There are no laws setting maximum wages and minimum rents to prevent unfavorable market disequilibrium. A maximum rent will reduce the supply of workers if they expect a higher wage than the maximum. This will cause shortages of labor as demand will rise while Continue reading...
