The Imposition of an Effective Minimum Wage in a Non-Competitive

question 27

Multiple Choice

The imposition of an effective minimum wage in a non-competitive industry might result in

• A) workers earning a lower wage.
• B) more workers being hired.
• C) higher firm profits.
• D) a decrease in labor supply.
• E) an increase in labor demand.

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Definitions:

Price Volatile

Price volatility refers to the rate at which the price of a security or commodity moves up or down.

Supply

The total amount of a product or service that is available to consumers.

Demand

The consumer's desire to purchase goods and services and willingness to pay a price for a specific good or service.

Cross Elasticity

A measure of how the quantity demanded of one good responds to a change in price of another good.