One Disadvantage to a Minimum Wage as a Policy Tool

Multiple Choice

One disadvantage to a minimum wage as a policy tool to reduce relative poverty is that it tends to cause unemployment. Under what circumstances will the negative impact of unemployment be the lowest?

A) when the supply of labour and demand for labour are both relatively elastic
B) when the supply of labour is relatively elastic and the demand for labour is relatively inelastic
C) when the supply of labour is relatively inelastic and the demand for labour is relatively elastic
D) when the supply of labour and demand for labour are both relatively inelastic