In a Labor Market Characterized by a Downward-Sloping Demand Curve

Multiple Choice

In a labor market characterized by a downward-sloping demand curve and an upward-rising supply curve,the disemployment effect of a minimum wage does not equal the total unemployment caused by the minimum wage.Which of the following can explain this difference?

A) The demand for unskilled labor increases with an increase in the wage rate
B) At a higher wage,more people may enter the job market
C) The demand for skilled labor increases with an increase in the wage rate
D) At a higher wage,the supply of labor becomes inelastic