When firms face an upward-sloping labor supply curve, increases in the minimum wage
A) may even increase employment
B) will always decrease employment
C) will alter the elasticity of labor demand

Question

Quizplus · Accepted Answer

When firms face an upward-sloping labor supply curve, an increase in the minimum wage can lead to an increase in employment because it attracts more workers into the labor market, potentially increasing the number of workers firms are willing to hire at the higher wage.

When Firms Face an Upward-Sloping Labor Supply Curve, Increases in the Minimum