Because in the long run, demand for labor is relatively more _____, an increase in the minimum wage in the long run leads to ____ job losses than in the short run.
A) elastic; fewer
B) elastic; more
C) inelastic; fewer
D) inelastic; more

Question

Quizplus · Accepted Answer

In the long run, demand for labor is relatively more elastic because employers have more time to adjust to wage changes, such as by automating processes or relocating production. Therefore, an increase in the minimum wage in the long run leads to more job losses than in the short run, as employers find alternatives to hiring workers at the higher wage.

Because in the Long Run, Demand for Labor Is Relatively