The market wage in industries A and B are $10/hour. The government raises the minimum wage from $8/hour to $12/hour. If the demand for labor is more elastic in industry B than in industry A: a) We would expect decreases in employment in both industries, but the losses will be greater in industry B. b) We would expect a decrease in employment in industry B, but not in industry A. c) We would expect a decrease in employment in industry A, but not in industry B. d) We would expect decreases in employment in both industries, but the losses will be greater in industry A
The market wage in industries A and B are $10/hour. The government raises the minimum wage from $8/hour to $12/hour. If the demand for labor is more elastic in industry B than in industry A: a) We would expect decreases in employment in both industries, but the losses will be greater in industry B. b) We would expect a decrease in employment in industry B, but not in industry A. c) We would expect a decrease in employment in industry A, but not in industry B. d) We would expect decreases in employment in both industries, but the losses will be greater in industry A
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter11: Labor Markets
Section: Chapter Questions
Problem 4SQ
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The market wage in industries A and B are $10/hour. The government raises the minimum wage from $8/hour to $12/hour. If the demand for labor is more elastic in industry B than in industry A:
a) We would expect decreases in employment in both industries, but the losses will be greater in industry B.
b) We would expect a decrease in employment in industry B, but not in industry A.
c) We would expect a decrease in employment in industry A, but not in industry B.
d) We would expect decreases in employment in both industries, but the losses will be greater in industry A
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