An effective minimum wage policy in a competitive market will increase unemployment and increase the total earnings of labor only if the demand for labor is A) relatively inelastic B) relatively elastic C) unit elastic D) greater than the supply E) positively related to the wage rate
An effective minimum wage policy in a competitive market will increase unemployment and increase the total earnings of labor only if the demand for labor is A) relatively inelastic B) relatively elastic C) unit elastic D) greater than the supply E) positively related to the wage rate
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
An effective minimum wage policy in a competitive market will increase
A) relatively inelastic
B) relatively elastic
C) unit elastic
D) greater than the supply
E) positively related to the wage rate
Please EXPLAIN in depth why relatively inelastic is the CORRECT answer.
Please EXPLAIN in depth why relatively elastic is the INCORRECT answer.
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