When You Raise Prices, People Stop Eating Out - And Stop Eating, Too

Sobering news from California and elsewhere

In April, a new law took effect in California that required many fast food workers to be paid $20 an hour. It was hailed as a big step toward a living wage, and it was especially a contrast to the national minimum wage of $7.25 an hour.

But a new study shows that the law caused restaurants to immediately raise prices. Visits to those California spots fel…