Here's the conversation I responded to: Article: The money’s gotta come from somewhere. People seem to forget that part. Response: 4% price increase to get to

Here's the conversation I responded to: Article: The money’s gotta come from somewhere. People seem to forget that part. Response: 4% price increase to get to a living wage. Not $15 sandwiches, just $7.28 instead of $7. Pay your employees. It's that simple. The clear implication of the response, clear to me at least, is that where the money comes from to raise the employees' wages is revenue due to the price increase. Let me know if you understand it differently. That only works if the price elasticity is 0. They sell the same amount of food at higher prices and use the money to pay higher wages. If price elasticity is 1, they raise prices by 4%, they sell 4% less food, and the money for wages needs to come from somewhere else. Could be less profit for the restaurant, could be hiring fewer workers or giving them fewer hours, could be smaller portions or cheaper ingredients, could be the money comes from the bondholders who don't get repaid when the company goes bankrupt. If price elasticity is infinite, they raise prices and demand goes to 0 and they eventually go bankrupt. No restaurant would intentionally be operating with prices set in a range where the price elasticity is 0. They would raise prices until it wasn't in that range. The money for wages can't (only) come from increased revenue from a price increase. That was my point.