# How does minimum wage effect market equilibrium?

For example, in the current U.S. economy, it's not clear that $7.25 is causing much unemployment. That's a pretty low minimum wage, compared to most labor markets. However, some people advocate for an increase to$15 per hour. This is more controversial, but just consider how firms with low-skill workers will respond. In the short run, maybe the just pay more. In the long-run, they can automate more and change the structure of their businesses in other ways to utilize less labor input.