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"The company recognizes that the minimum wage employment costs will be equal for all cafes in the area, as they will pass costs onto customers" The elasticity
by al2o3cr 12y ago
"The company recognizes that the minimum wage employment costs will be equal for all cafes in the area, as they will pass costs onto customers"
The elasticity of demand for cafes is not zero. Claiming that businesses can "pass costs onto their consumers" without losing sales is assuming that decidedly unrealistic fact.
- Agustus 12y agoAbsolutely, I left this out while cutting parts from my comment. Sales will be affected as individuals debate making a purchase at an increased price.