Why Do Some Workers Lose Their Jobs When the Minimum

question 93

Multiple Choice

Why do some workers lose their jobs when the minimum wage is increased?

• A) The supply of labour decreases.
• B) The demand for labour is perfectly elastic.
• C) The increase in labour costs decreases the supply of the product, thereby raising the price of the good so that the equilibrium quantity decreases to zero.
• D) The demand for labour is perfectly inelastic.
• E) The increase in the minimum wage decreases the quantity of labour demanded.

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Definitions:

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The officially sanctioned power to make decisions, to direct others, or to enact laws or directives.

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An entity or business that produces goods on a large scale using raw materials and various processes, typically involving machinery and labor.

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