Some economists have argued that minimum-wage increases have minimal impact on overall employment because firms can absorb the additional costs through small price increases. Critics counter that this argument ignores how labor-intensive small businesses, which lack pricing power, will simply close. ______ , recent empirical work suggests both effects are real but operate at different scales: large chains adjust prices, while marginal small businesses do close, with the net employment effect depending on the local labor market.
Which choice completes the text with the most logical transition?
- Acheck_circle
In response
- B
However
- C
Even so
- D
Likewise
Explanation
Recent work responds to the dispute and offers a synthesis. "In response" signals reaction to the previous arguments. The others do not capture this resolving move.