Question

how will the increase in the wages of workers affect industrial production ​

Answer 1

Respuesta: Neoclassical economic theory predicts that increasing minimum wages will lead to a reduction in employment. This can happen for two reasons: first, because the payment of minimum wages can force companies to increase the prices of their products and services, leading to a possible reduction in demand from international consumers or buyers who are they are confronted with these higher prices (the so-called "scale effect"). Second, when low-wage workers are "made more expensive" by receiving the minimum wage, companies may choose to replace some of them with more machines and a few skilled workers to operate them (the so-called "substitution effe.