Why Do Some Workers Lose Their Job When the Minimum

question 36

Multiple Choice

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

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

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