Democrats argue that labor demand is _, so _ jobs will be lost when the minimum wage is raised....

Question:

Democrats argue that labor demand is _, so _ jobs will be lost when the minimum wage is raised.

A) inelastic; few

B) inelastic; many

C) elastic; few

D) elastic; many

Elasticity of demand

Elasticity of demand refers to the responsiveness of quantity demanded of a good with respect to the changes in the price of the good. For example, if the elasticity is -2, it shows that for every 1 percent increase in the price of a good, the demand for the good decreases by 2 percent.

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Answer: A.

Demand for labor could be considered inelastic because regardless of the changes in wages, the demand for labor does not change as much....

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Price Elasticity of Demand: Definition, Formula & Example

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Chapter 3 / Lesson 54
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Learn what price elasticity is. Discover how to find price elasticity of demand, study examples of price elasticity, and examine a price elasticity graph.


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