How does the amount of employment created by an increase in the minimum wage depend on the elasticity of labor demand? Group of answer choices: a. When the minimum wage increases, employment will fall by a greater amount when the demand for labor is more elastic. b. When the demand for labor is more elastic, raising the minimum wage has no impact on employment. c. When the demand for labor is more inelastic, raising the minimum wage has no impact on employment. d. When the minimum wage increases, employment will fall by a greater amount when the demand for labor is more inelastic.
How does the amount of employment created by an increase in the minimum wage depend on the elasticity of labor demand? Group of answer choices: a. When the minimum wage increases, employment will fall by a greater amount when the demand for labor is more elastic. b. When the demand for labor is more elastic, raising the minimum wage has no impact on employment. c. When the demand for labor is more inelastic, raising the minimum wage has no impact on employment. d. When the minimum wage increases, employment will fall by a greater amount when the demand for labor is more inelastic.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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How does the amount of employment created by an increase in the minimum wage depend on the elasticity of labor demand ?
Group of answer choices:
a. When the minimum wage increases, employment will fall by a greater amount when the demand for labor is more elastic.
b. When the demand for labor is more elastic, raising the minimum wage has no impact on employment.
c. When the demand for labor is more inelastic, raising the minimum wage has no impact on employment.
d. When the minimum wage increases, employment will fall by a greater amount when the demand for labor is more inelastic.
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