According to the textbook, proponents of minimum wage laws assume that
A)the demand curve for unskilled workers is nearly vertical.
B)the supply curve for unskilled workers is upward sloping.
C)the demand curve for unskilled workers is nearly horizontal.
D)the supply curve for unskilled workers is downward sloping.

Question

Quizplus · Accepted Answer

Proponents of minimum wage laws assume that the demand for unskilled workers is relatively inelastic, or nearly vertical, meaning that employers will continue to hire the same number of workers regardless of the wage rate. This assumption justifies the belief that a minimum wage increase will have little to no effect on employment levels.

According to the Textbook, Proponents of Minimum Wage Laws Assume