Answer:
Minimum wage is beneficial for society. Answer from edmentum
Step-by-step explanation:
Some people would argue that establishing a minimum wage is an additional cost to employers because it leads to a fall in quantity demanded for labor and employers have to lay off some workers because they cannot afford to pay higher wages. As wages increase, the quantity supplied of labor increases because workers will earn more money. The fall in the quantity of labor demanded coupled with the increase in the quantity of labor supplied results in unemployment.
However, I believe that establishing a minimum wage is beneficial for society. Before the government introduced a price floor, there was an equilibrium wage rate in the economy as the quantity demanded for labor was equal to quantity supplied. But the equilibrium wage rate was not high enough to satisfy the daily needs of workers. As a result, most workers earning that wage would live in poverty. With an increase in the minimum wage, workers have extra money to spend on various goods and services, which aids economic growth. Establishing a minimum wage is a benefit to society.