If the Imposition of a Binding Minimum Wage Results in Much

question 122

Multiple Choice

If the imposition of a binding minimum wage results in much higher unemployment among workers seeking minimum wage jobs,

• A)firms will respond by demanding more labor.
• B)those workers who are employed will be worse off than before the minimum wage law.
• C)labor demand is relatively elastic.
• D)labor demand is relatively inelastic.