Question

How will employers respond to an increase in the minimum wage?

a.They complain about paying the higher wages, but do not change the number of workers they employ.
b.They expand the training opportunities offered to low-skill workers.
c.They reduce their labor force and/or hire more experienced, skilled workers.
d.The profits of the employers are transferred to the employees.

Answer 1

C

Step-by-step explanation:

Increasing minimum wage increases the cost of hiring labour. As a result, firms would reduce the amount of labour skilled labour employed in order to reduce cost of hiring labour.

Another option, is for firms to hire more skilled labours