Recently, there have been numerous calls across the country to raise the federal minimum wage. Read
this article describing the effects of a higher minimum wage in cities that have raised it:
minimum wage effects in restaurants.pdf
(For background, here’s more on the mall with two minimum wages:
http://www.npr.org/sections/money/2014/08/28/343430393/a-mall-with-two-minimum-wages (Links to an
external site.))
Briefly describe three ways in which business owners adjusted to a higher minimum wage.
All the cities listed in the article are on the West Coast, most in California. How do you think business in
Alabama would respond to a higher minimum wage—do you think their responses would be similar, or
different, and why?
List two costs and two benefits of raising the minimum wage.
Would you support a law raising the minimum wage in Alabama to $10/hour, similar to San Jose? Why or
why not?
Sample Solution
