Both Starbucks and McDonald's have a similar supply of labor for their retail outlets, and in both chains, workers earn a competitively determined wage of $10 per hour. Suppose that the government increases the minimum wage to $15 per hour. If more McDonald's workers lose their jobs than Starbucks employees, what can you conclude about the demand for workers in both outlets? Use graphs to justify your answer.

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The Answer of Both Starbucks and McDonald's have a similar supply of labor for their retail outlets, and in both chains, workers earn a competitively determined wage of $10 per hour. Suppose that the government increases the minimum wage to $15 per hour. If more McDonald's workers lose their jobs than Starbucks employees, what can you conclude about the demand for workers in both outlets? Use graphs to justify your answer.

Both Starbucks and McDonald's Have a Similar Supply of Labor