Question

What happens to the number of coffee shops if the wage increases? What happens to the demand for employees for the coffee shops?

Answer 1

if the wages increases then less will be employed. 

Answer 2

The number of coffee shops decreases as well as the demand of employees.

Step-by-step explanation:

Given the case that the wages increase, to have equal revenues, organizations will have to cut off the number of employees they have. It is based on the supply curve theory that states that as higher the prices (wages in the case) the lower the quantity (labor for coffee shops). In that sense, as job positions for coffee shops and the shops are reduced, its demand will be lowered as well.