Workers at a bicycle assembly plant currently make minimum wage if the federal government increase the minimum wage by $1.00 an hour it is likely that

a. the demand for bicycle assembly workers will increase.
b. supply of bicycles will shift to the right
c. supply of bicycles will shift to the left
d. firm must increase output to maintain profit levels.

Workers at a bicycle assembly plant currently make minimum wage if the federal government increase the minimum wage by $1.00 an hour it is likely that supply of bicycles will shift to the left

Explanation:

Increasing the minimum wage raises the purchasing power of employers and, in effect, boosts the economy overall. Increasing the minimum wage would lead to narrowing the longstanding ethnic wealth gap. The present federal minimum is less than in 1956 in real value.

Increasing minimum wages, apart from basic supply and demand principle, can also lead to more productive activities by businesses and harder work by workers. Workers may search for ways to improve productivity, for instance, to improve the performance of their workforce or to spend more in preparation for jobs.

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