Seattle: Highest Minimum Wage, Lowest Unemployment Rate
You don&#x27;t need advanced economics to understand that setting a price floor will reduce quantity supplied and increase quantity demanded. It&#x27;s evident from logic. What other good does not respond to changes in price? Everyone earns some amount of marginal revenue, say X, and they are paid Y where X &gt; Y. Is there absolutely no-one where the marginal revenue that they earn their employer is between the old minimum wage and the new, higher minimum wage?<p>If you throw a rock in a lake, you probably can&#x27;t reasonably measure the impact it had on the height of the lake. But you&#x27;re certain that it had an impact. Similarly, you must use logic and reason to deduce that putting a mandated price floor on labor will reduce the amount of labor demanded.