Economists who support minimum-wage legislation are likely to believe that the
A)demand for unskilled labor is relatively inelastic.
B)demand for unskilled labor is relatively elastic.
C)supply of unskilled labor is relatively elastic.
D)supply of unskilled labor is relatively inelastic.

Question

Quizplus · Accepted Answer

Economists who support minimum-wage legislation believe that the demand for unskilled labor is relatively inelastic, meaning that employers cannot easily substitute low-skilled workers with machines or other resources. As a result, employers are willing to pay a higher wage to keep their current workforce, which leads to increased income for the workers and an overall increase in economic activity.

Economists Who Support Minimum-Wage Legislation Are Likely to Believe That