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The Effect of Imposing a Minimum Wage Rate on the Quantity

Question 76

Multiple Choice

The effect of imposing a minimum wage rate on the quantity of labor employed is


A) greater the less elastic is the demand for labor
B) greater the less elastic is the supply of labor
C) zero if the minimum wage rate is above the equilibrium wage rate
D) greater the more elastic is the demand for labor
E) greater the closer the minimum wage is to the equilibrium level

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