How does population distribution and density influence economic processes such as minimum wage, cost of housing, groceries, etc?

As the population increase, the amount of labor resources in that area is also increased.

When this happen, that area will attract more investors to put their money in the area and created a lot of job opportunities. As a result, the average wage of the people in that area is also increased.

When there are a lot of high paying jobs, there will be more people who are attracted to move into that area. This will lead to an average increase in the cost of housing and the average price of goods for daily consumption.

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