Studies of the minimum wage suggest that the price elasticity of demand for teenage workers is relatively inelastic. This means that:
A. an increase in the minimum wage would increase the total incomes of teenage workers as
a group.
B. an increase in the minimum wage would decrease the total incomes of teenage workers as
a group.
C. the unemployment effect of an increase in the minimum wage would be relatively large.
D. the cross elasticity of demand between teenage and adult workers is positive and very
large.
Answer: A
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