This was actually a short answer question from my economics test which asked me to explain in a short paragraph how minimum wage reflects the application of "supply and demand" to the real worl economy of Canada. This application of supply and demand to the real world economy of Canada is by showing that as the pay rates go up, the supply of citizens willing and able to work for the job or position available …showed first 75 words of 329 total…

…showed last 75 words of 329 total…to support themselves. Moreover, if the floor price was not set and the equilibrium price was below the amount of welfar, it would be unfair to the working force since they would be better off not working and reaping the benefits from the government. This is why the government imposes minimum wage laws; to encourage and motivate people to go out and look for jobs. It is essential for the unemployed to look for employment.