Question: Prices have risen over 32% since the last increase in the minimum wage. Increasing the minimum wage would increase the demand for goods and services

Prices have risen over 32% since the last increase in the minimum wage. Increasing the minimum wage would increase the demand for goods and services which could increase the economic group. The other side of the equation is supply. When the cost of resources increases, supply decreases. Since labor is a major component of producing goods and services the amount of labor may actually decrease. What is the impact on prices when supply decreases and demand increases?

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