Economics 101: The Law of Demand Really Works

News Headline: "New Wage Boost Puts Squeeze on Teenage Workers Across Arizona: Employers Are Cutting Back hours, Laying Off Young Staffers."

Some Arizona employers, especially those in the food industry, say payroll budgets have risen so much (because of the recent 31% minimum wage hike from $5.15 to $6.75 per hour) that they're cutting hours, instituting hiring freezes and laying off employees.

Mark Messner, owner of Pepi's Pizza in Phoenix, says he plans to lay off three teenage workers and decrease hours worked by others.

"I've had to go to some of my kids and say, Look, my payroll just increased 13 percent. Sorry, I don't have any hours for you."