In light of a new bill to raise the minimum wage, an employer asks: "I have 3

employees. If I can pay each of my 3 employees $10 a piece for a grand total of $30

an hour, and the minimum wage suddenly gets raised to $15/hr, what happens to

employee number 3?" First, give an answer to this rhetorical question then second,

show this result using a supply and demand diagram.

Answer rating: 100% (QA)

Solution The Situation An employer currently pays 3 workers 10hour creating a total labor cost of 30hour A new bill proposes increasing the minimum wa... View the full answer