Aielyn on 06 February 2013
| Max King of the Wild said: Only 3 possible outcomes. Cut hours (which defeats this increase) increase prices (which defeats this increase) or eat costs.... What do you think businesses will do? I can tell you right now both Target and Little Caesars will decrease hours and Little Caesars will most likely increase prices. |
These three possible outcomes only apply if you ONLY consider the direct impacts. As I've already pointed out, there are heaps of different feedback mechanisms in the market. The net impact is NOT obvious. It isn't even remotely estimable by such crude and amateur reasoning.
