When the minimum wage is raised in a competitive market,ceteris paribus,

Question

Quizplus · Accepted Answer

When the minimum wage is raised, some workers will be better off because they will receive higher wages. However, some employers may respond by reducing their workforce, reducing the hours worked by their employees, or increasing prices to cover the additional costs. This can result in some workers being worse off, as they may lose their job or have their hours reduced. Therefore, the effects of a minimum wage increase are not universal and depend on a variety of factors in each specific market.

When the Minimum Wage Is Raised in a Competitive Market,ceteris