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If the Equilibrium Wage Is $9 in the Market for Hotel

Question 75

Multiple Choice

If the equilibrium wage is $9 in the market for hotel workers and $8 in the market for restaurant workers and both markets have similar elasticities of labor supply and demand,then a minimum wage of $4 in both markets will:


A) cause more unemployment among hotel workers than restaurant workers.
B) cause more unemployment among restaurant workers than restaurant workers.
C) cause the same amount of unemployment in both markets.
D) have no effect in either market.

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