The Unemployment Caused by Minimum Wage Would Be Larger If

Multiple Choice

The unemployment caused by minimum wage would be larger if

A) both labor demand and labor supply are more elastic.
B) both labor demand and labor supply are more inelastic.
C) minimum wage is set equal to the equilibrium wage rate.
D) minimum wage is set below the equilibrium wage rate.
E) both labor demand and labor supply are perfectly inelastic.