Opponents of the minimum wage law implicitly assume that the _____ if they worry about the unemployment effects of the policy.
A)supply curve for unskilled workers is inelastic
B)supply curve for unskilled workers is highly elastic
C)demand curve for unskilled workers is inelastic
D)demand curve for unskilled workers is highly elastic

Question

Quizplus · Accepted Answer

Opponents of the minimum wage law worry that if the demand for unskilled workers is highly elastic (meaning that employers are very responsive to changes in the price of labor), then raising the minimum wage could lead to a decrease in employment, as employers will be less willing to hire workers at the higher wage. Therefore, if opponents are worried about this unemployment effect, they must believe that the demand curve for unskilled workers is highly elastic.

Opponents of the Minimum Wage Law Implicitly Assume That the _____