The people who immediately benefit from a minimum wage are
A) employers who now pay the minimum wage.
B) those people who enter the labor force to search for minimum wage jobs.
C) the workers who retain their jobs after enactment of the minimum wage.
D) everyone, both demanders and suppliers, because the minimum wage benefits everyone.
E) all workers.

Question

Quizplus · Accepted Answer

The workers who retain their jobs after enactment of the minimum wage are the immediate beneficiaries because they receive a higher wage. Employers who pay the minimum wage may face increased costs, and some may choose to reduce their workforce or raise prices, resulting in potential negative effects for consumers and job seekers. The minimum wage does not necessarily benefit everyone, as it can create Winners and Losers within the labor market.

The People Who Immediately Benefit from a Minimum Wage Are