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What if the federal miniumum wage
doubled to $15 an hour. Would this help or hurt fast food
workers?
" . . . if we woke up
tomorrow and fast food restaurants had doubled worker pay
tomorrow . . . I'm sure you would see a lot of jobs lost
, . . . But that’s only part of the story, Baker
argues. Even if there was, let’s say, a 20 or 30
percent drop in employment at these places (Saltsman told
me he projects there could be up to a 27 percent drop),
the remaining workers would still “take home twice
as much pay. They're still way better off,” says
Baker."
To understand and explain this
statement you need to discuss price elasticity of demand for
workers. Does Baker think that the price elasticity of
demand for fast food workers is elastic or inelastic?
[Answer: Inelastic]
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