Suppose the Elasticity of Labor Demand Is Less Than 1

question 120

Multiple Choice

Suppose the elasticity of labor demand is less than 1 in absolute value. Imposing a minimum wage above the equilibrium wage will:

• A)increase the earnings of every worker.
• B)result in full employment.
• C)increase the earnings of workers as a group.
• D)make few workers better off.

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Definitions:

Cuneiform Bones

A group of three bones in the foot located between the navicular bone and the first, second, and third metatarsal bones.

Hematopoiesis

The production of blood cells and platelets, which occurs in the bone marrow.

Bone Marrow

The soft, fatty tissue inside bones that produces blood cells.

Vertebrae

The individual bones that form the vertebral column (spine), providing structural support and protecting the spinal cord.