The Unemployment Caused by Minimum Wage Would Be Larger If

question 65

Multiple Choice

The unemployment caused by minimum wage would be larger if

• A) both labor demand and labor supply are more elastic.
• B) both labor demand and labor supply are more inelastic.
• C) minimum wage is set equal to the equilibrium wage rate.
• D) minimum wage is set below the equilibrium wage rate.
• E) both labor demand and labor supply are perfectly inelastic.

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