Workers at a bicycle assembly plant currently earn the mandatory minimum wage. If the federal government increases the minimum wage by $1.00 per hour, then it is likely that the

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Quizplus · Accepted Answer

An increase in the minimum wage raises the cost of labor for the bicycle assembly plant. This increase in production cost can lead to a decrease in the supply of bicycles, as it becomes more expensive to produce each bicycle. This is represented by a leftward shift in the supply curve.

Workers at a Bicycle Assembly Plant Currently Earn the Mandatory