Because the demand for labor is more _____ in the long run, a minimum wage increase will lead to _____ job losses in the long run.
A) elastic; fewer
B) inelastic; fewer
C) elastic; more
D) inelastic; more

Question

Quizplus · Accepted Answer

The demand for labor is more elastic in the long run because employers have more time to adjust to wage changes, such as by automating processes or relocating production. Therefore, a minimum wage increase will lead to more job losses in the long run as employers adjust.

Because the Demand for Labor Is More _____ in the Long