For a Given Increase in the Minimum Wage, Which of the Following

question 13

Multiple Choice

For a given increase in the minimum wage, which of the following would likely result in a smaller decrease in teenage employment?

• A) Teenage workers are close substitutes with older workers who are paid more than the minimum wage.
• B) Teenagers produce goods that have a high price elasticity of demand.
• C) Teenager labor represent a small fraction of the cost of making goods.
• D) Teenagers are paid so little that the minimum wage increases their wage more.

---

Definitions:

Annual Revenue

The total income generated by a business, organization, or individual within a fiscal year from its operations.

Initial Investment

The initial sum of money used to start a business project, purchase assets, or acquire starting capital.

Worst Payoff Rate

The lowest possible return or least favorable outcome from an investment or decision under a specific scenario.

ARM

In computing, a family of reduced instruction set computing (RISC) architectures for computer processors. In finance, an adjustable-rate mortgage.