Suppose the Minimum Wage Is $4 Per Hour, and 1,100

question 61

Multiple Choice

Suppose the minimum wage is $4 per hour, and 1,100 units of labour are hired. Then the government raises the minimum wage to $6 per hour, and 900 units are now hired. Choose the correct statement.

• A)Total wages paid to workers has increased.
• B)The price elasticity of demand for labour is 0.5.
• C)There is unemployment in this labour market.
• D)The quantity of labour supplied is greater at the higher minimum wage.
• E)The labour market is efficient.

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Definitions:

Capital Balances

The amount of money that partners or owners have contributed to a business or the retained earnings within a company.

Income Ratio

A financial metric that compares specific income components to total revenue or other earnings measures, often used to assess profitability or operational efficiency.

Capital Balance

Represents the amount of funds contributed by investors or owners plus retained earnings in a company.

SEC

The U.S. Securities and Exchange Commission, a federal agency responsible for enforcing federal securities laws and regulating the securities industry.