Joe Sabia, an assistant professor of public policy at American University in Washington, DC, says that a 10 percent increase in the minimum wage reduces retail employment by 1 percent and reduces employment among young workers by 3.4 percent.If President Obama is successful increasing the minimum wage by 30 percent as explained in "Obama Wants $9.50 Minimum Wage," we can expect
A) Employment to decrease by about 30 percent and prices to increase.
B) Unemployment to increase by about 30 percent and prices to decrease.
C) Retail employment to decrease by about 3 percent and young workers'employment to decrease by about
10)2 percent.
D) Prices to increase and unemployment to increase by about 3 percent.

Question

Quizplus · Accepted Answer

Based on Joe Sabia's research, a 30 percent increase in minimum wage would likely result in retail employment decreasing by about 3 percent and young workers' employment decreasing by about 10 percent. This scenario does not necessarily indicate an increase in overall unemployment or prices, so options A, B, and D are not accurate predictions.

Joe Sabia, an Assistant Professor of Public Policy at American