While I mostly agree with you, econ101 is a pretty poor argument; early econ courses (like intro to micro and macro) are notoriously not grounded in reality.
You can argue about the goals of economic policy, but that’s very different from arguing the effects.
What is the response to rising labor demand? Do you
Independently raise wages to the bid price?
Or
Form a cartel to fix wages below the clearing floor?
The former is the “natural” response you learn about in 101, assuming a naive approach to the problem. The latter is what you learn works best in 201, when your goal is profit maximization.
While I mostly agree with you, econ101 is a pretty poor argument; early econ courses (like intro to micro and macro) are notoriously not grounded in reality.
You can argue about the goals of economic policy, but that’s very different from arguing the effects.
What is the response to rising labor demand? Do you
Or
The former is the “natural” response you learn about in 101, assuming a naive approach to the problem. The latter is what you learn works best in 201, when your goal is profit maximization.