An increase in the minimum wage will have a large effect on the number of workers employed in minimum wage occupations if

Question

Quizplus · Accepted Answer

If demand for workers is elastic, then an increase in the minimum wage will result in a relatively large decrease in the demand for workers, as employers will substitute to other factors of production or shift production to regions where labor costs are lower. This will lead to a significant reduction in the number of workers employed in minimum wage occupations.

An Increase in the Minimum Wage Will Have a Large