Answer to Question #65461 in Economics of Enterprise for mirza
How does the minimum wage affect employment in these fast-food restaurants? Draw a graph to show what has happened, and estimate the effects on employment in the fast-food sector.
It is important to mention that there can be different scenarios and I am representing a basic one. Sector and individual firm act in the same way. The main purpose is that when minimal wages grow than follows the decrease of the firm’s costs. The later causes decline of the demand in this sector which brings to the cut of the incomes of the sector. In this conditions firm have no choice than cutting their costs by firing workers, which decrease the employment in the sector. This process has been described in the following picture.
I have no more assignments.
Thank you for all the help! With 19 credit hours, their is always one class that hits the back burner, with your help i was able to get a B in this class and am going to Walk on graduation.
Thank you, Thank you, Thank you!