Consider the effects of an increase in the minimum wage in a city such as Louisville, KY. If the minimum wage increased in the city limits of Louisville, but did not increase across the river in Indiana, what effect might that have in both markets? Think about how the demand for labor changes with a wage increase. Think about how the supply of labor changes with a wage increase. Think about how spending changes with increased income. What effect will this wage increase have on those who live in Louisville specifically and what effect will this have on those who live in Indiana?