Why Do Some Workers Lose Their Jobs When the Minimum

Multiple Choice

Why do some workers lose their jobs when the minimum wage is increased?

A) The supply of labour decreases.
B) The demand for labour is perfectly elastic.
C) The increase in labour costs decreases the supply of the product, thereby raising the price of the good so that the equilibrium quantity decreases to zero.
D) The demand for labour is perfectly inelastic.
E) The increase in the minimum wage decreases the quantity of labour demanded.