Question

if the government decides to raise the minimum wage, ceteris paribus

Answer 1

When the government decides to raise the minimum wage ,some workers will be better off and others worse off . It affects some workers adversly while others may receive the benefits of the wage rise.

This is because when there is an increase in the minimum wage , the supply of labour increases where as the demand for labour decreases. Workers who are better off includes those who are currently employed in the economy. The others may find it difficult to find an employment opportunity at a higher wage rate as the demand for labour is less.