Raising the federal minimum wage is always a controversial issue. On one hand, workers earn higher income. On the other hand, as labor becomes more expensive, companies may not be able to employ as many people. The potential for higher income levels and lower employment have important effects on the economy as a whole.
In this lesson students graph and solve systems of linear equations in order to examine the effects of wage levels on labor and consumer markets, and they discuss the possible pros and cons of increasing the minimum wage.