In 2015, President Obama Proposed Increasing the Minimum Wage from $7.25/hr

Multiple Choice

In 2015, President Obama proposed increasing the minimum wage from $7.25/hr to $10.10/hr. According to theory, what would likely be the result of such an increase?

A) Some workers would leave the labor market.
B) Firms would hire more workers.
C) All workers prior to the wage increase would now earn at least $10.10 per hour.
D) Unemployment would increase as firms lay off workers.