Suppose the Minimum Wage Is $4 Per Hour,and 1,100 Units

Suppose the minimum wage is $4 per hour,and 1,100 units of labour are hired.Then the government raises the minimum wage to $6 per hour,and 900 units are now hired.Choose the correct statement.

A) Total wages paid to workers has fallen.
B) The price elasticity of demand for labour is 0.5.
C) There is unemployment in this labour market.
D) The quantity of labour supplied is greater at the higher minimum wage.
E) all of the above except A

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free