Why do some workers lose their job when the minimum wage is increased?
A) The increase in labor costs decreases the supply of the product, thereby raising the price of the good so that the equilibrium quantity decreases to zero.
B) The increase in the minimum wage decreases the quantity of labor demanded.
C) The demand for labor is perfectly inelastic.
D) The supply of labor decreases.
E) The demand for labor is perfectly elastic.
B
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Consider the monopolist depicted in the figure above. When it maximizes its profit, a single-price monopolist sets a price of ________ per unit
A) $4 B) $7 C) $9 D) $11
In economics, abstraction from reality is necessary because of the complexity of the real world.
Answer the following statement true (T) or false (F)
In a persisting demand-pull inflation...
What will be an ideal response?
The basic proposition in international trade is that
A. in the long run, imports are paid for by exports. B. trade is determined by absolute advantage. C. everyone is made better off by free trade. D. fair trade is more important than free trade.