Assess the results of minimum wage laws using an economic framework. To the extent that a minimum wage exceeds what a company would otherwise pay for labor, it represents a price increase for an input to its production process. According to economic principles, companies would reduce their consumption of the higher-priced good (labor). In their quest to maintain profits, they would try to increase efficiency via reorganization of processes and introduction of technology, so as not to increase the prices of their products too much, which would reduce sales. How do these adjustments by companies to an increased minimum wage affect the following?

Profits after companies, employees and customers adjust to the new environment.