You own a pizza restaurant that employs workers at the minimum wage. Suppose the minimum wage increases. What is the likely result?
| a. |
Labor demand increases. |
|
| b. |
The quantity of labor demanded falls. |
|
| c. |
The quantity of labor demanded rises. |
|
| d. |
Labor demand decreases. |
As the minimum wage increases, cost to the firm increases.
Therefore labour demand decreases.
d) labor demand decreases.
You own a pizza restaurant that employs workers at the minimum wage. Suppose the minimum wage...