Opponents of minimum wage argue that it increases unemploymnet. Explain the argument with supply and demand?

Question

(b) what characteristics of the demand and or supply curve of unskilled labor would undermine the above argument. Explain what would happen.

Answer 1

my basic understanding of it is this...

for example.  if an employer has 5 employees at minimum wage and the wage increases, he may have to let one go to afford the other 4.  Just because wages go up for workers, doesn't mean that profits increase for employers.  So now there is one more person in the unemployment line.

Answer 2

To be honest, I haven't made up my mind on minimum wage, but I'll explain ^^. Since I do know the counterargument towards it.

^^.  Well raising the minimum wage could hurt businesses (along with workers).  It would increase the supply of labor.  However, due to high (increased) costs (minimum wage adds cost), demand for labor would be decreased.  So, there would be much supply (labor) but low demand (not much want for workers).  As a result, there would be increased unemployment.  Businesses would possibly fire workers to deal with increased cost.  And a lot of people wouldn't be able to find a job (since there is less demand).

That is why people are against it. Hope this helped.