Suppose the Minimum Wage Is $4 Per Hour, and 1,100

Multiple Choice

Suppose the minimum wage is $4 per hour, and 1,100 units of labour are hired. Then the government raises the minimum wage to $6 per hour, and 900 units are now hired. Choose the correct statement.

A) Total wages paid to workers has increased.
B) The price elasticity of demand for labour is 0.5.
C) There is unemployment in this labour market.
D) The quantity of labour supplied is greater at the higher minimum wage.
E) The labour market is efficient.