A market for private math tutors in Madison organized by the Students' Union. What is the wage rate that math tutors earn and how many are hired? If the Students' Union sets the minimum wage for private math tutors at $8 an hour, how many tutors are employed and what wage rate do they earn? If the Students' Union sets the minimum wage for private math tutors at $15 an hour, how many tutors are employed and what wage rate do they earn? 

Is the minimum wage of $15 an hour efficient? Is it fair? If a black market gets going and the Students' Union cannot enforce the minimum wage, what wage rate might some unscrupulous tutors earn? Union members are generally paid significantly more than the minimum wage. Why, then, do unions support increases in the minimum wage?

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