If the imposition of a binding minimum wage results in much higher unemployment among workers seeking minimum wage jobs,
A)firms will respond by demanding more labor.
B)those workers who are employed will be worse off than before the minimum wage law.
C)labor demand is relatively elastic.
D)labor demand is relatively inelastic.

Question

Quizplus · Accepted Answer

When the imposition of a binding minimum wage leads to much higher unemployment, it indicates that the quantity of labor demanded decreases significantly, suggesting that labor demand is relatively elastic.

If the Imposition of a Binding Minimum Wage Results in Much