An increase in the minimum wage will cause a relatively large increase in unemployment among

Question

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If the demand for labor is relatively elastic, then an increase in the minimum wage will make it more expensive for employers to hire workers. This will lead to a decrease in the quantity of labor demanded, which will result in higher levels of unemployment, especially among unskilled workers who may be seen as more easily replaceable by technology or other substitutes. Skilled workers, on the other hand, may have more bargaining power and be in greater demand even with higher wage rates, so their employment may not be as directly affected.

An Increase in the Minimum Wage Will Cause a Relatively