SCENARIO 1.1: An economist wants to understand the relationship between minimum wages and the levelof teenage unemployment. The economist collects data on the values of the minimum wage and the levelsof teenage unemployment over time. The economist concludes that a 1% increase in minimum wagecauses a 0.2% increase in teenage unemployment. From this information he concludes that the minimumwage is harmful to teenagers and should be reduced or eliminated to increase employment amongteenagers.