According to the child labour model, if the demand curve is sufficiently elastic   A. there is a single equilibrium with high wages or low wages, depending on the demand for labour   B. there is a single equilibrium with low wages   C. there is a single equilibrium with high wages   D. there are multiple equilibria

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter20: Unemployment
Section20.3: Minimum-wage Laws
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According to the child labour model, if the demand curve is sufficiently elastic

 

A. there is a single equilibrium with high wages or low wages, depending on the demand for labour

 

B. there is a single equilibrium with low wages

 

C. there is a single equilibrium with high wages

 

D. there are multiple equilibria

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