¶ … employer's point-of-view, low-wage workers are effectively 'disposable' commodities -- for the most part, these can be easily replaced, because their jobs do not require much additional training. Without a minimum wage, employers have a greater incentive to hire more workers for very low pay. Also, if they hire many low-wage workers part-time rather than full-time, they do not have the additional costs of having to pay these part-time employees costly benefits. Elasticity of supply also has a substantial impact upon the labor market. When supply is low, the minimum wage is less significant, because even low-wage workers can pick and choose what are the most desirable positions. However, when this is not the case, in the absence of the minimum wage, wages will plummet because of increased competition for available jobs. Q2. Elasticity of supply is defined as "the rate of response of quantity demand due to a price change" (Moffat, 2012, Price elasticity of supply). Elasticity of supply becomes far greater as time goes on. In the short-term, a rapid response by producers is nearly impossible to a sharp shift in price. However, if prices are going up, manufacturers...

A perfectly elastic supply curve, like a perfectly elastic demand cure is "horizontal, perfectly horizontal, with absolutely no slope" (Perfectly elastic, 2013, Amos Web). A perfectly elastic supply is "a good has a large number of very, very, very close (as in perfect) substitutes-in-production readily available. Any quantity of the good can be produced at the same production cost and price because the productive resources can be easily (as in perfectly) switched back and forth between other goods" (Perfectly elastic, 2013, Amos Web). Given that there is "no increasing opportunity cost. [And] There are no economies of scale," when perfectly elastic, producers can easily raise the amount they produce to meet a greater customer willingness to pay more (Perfectly elastic, 2013, Amos Web).
Q3. The price elasticity of demand is: "PEoD = (% Change in Quantity Demanded) / (% Change in Price)" (Moffat, 2012, Price elasticity of demand). A highly elastic product in terms of demand is one…