Jewelry workers and maintenance workers both get paid $6 an hour. Their supply curves are identical. The demand curve for jewelry workers is more elastic than the demandcurve for maintenance workers. An increase in the minimum wage to $8.25 an hour will create

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Quizplus · Accepted Answer

The demand curve for jewelry workers being more elastic means that employers are more sensitive to wage increases in this sector. Therefore, an increase in the minimum wage will lead to a larger reduction in the quantity of jewelry workers demanded compared to maintenance workers, resulting in greater unemployment among jewelry workers.

Jewelry Workers and Maintenance Workers Both Get Paid $6 an Hour