If the Equilibrium Wage Is $9 in the Market for Hotel

question 92

Multiple Choice

If the equilibrium wage is $9 in the market for hotel workers and $8 in the market for restaurant workers and both markets have similar elasticities of labor supply and demand,then a minimum wage of $10 in both markets will:

• A) cause more unemployment among hotel workers than restaurant workers.
• B) cause more unemployment among restaurant workers than restaurant workers.
• C) cause the same amount of unemployment in both markets.
• D) have no effect in either market.