A Local Starbucks Needs Exactly Five Baristas to Make Coffee

A local Starbucks needs exactly five baristas to make coffee during a shift. In this case, the demand curve for baristas is perfectly _____, and an increase in minimum wage above the equilibrium wage will lead to _____ in the wage of workers.

A) elastic; no change
B) elastic; an increase
C) inelastic; no change
D) inelastic; an increase

Correct Answer:

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