> At that higher wage, more people will apply for the job. The increased supply of labor will allow the boss to pay less than $10 an hour; it might suffice to pay only $7.
How is the boss taking advantage of the increased supply of labor that is conditional on increased pay, if that boss is short changing on pay vs the market?
If all other restaurants have increased net wages, this boss will run short on waiters.
> At that higher wage, more people will apply for the job. The increased supply of labor will allow the boss to pay less than $10 an hour; it might suffice to pay only $7.
How is the boss taking advantage of the increased supply of labor that is conditional on increased pay, if that boss is short changing on pay vs the market?
If all other restaurants have increased net wages, this boss will run short on waiters.