Nobel Laureate Edmund Phelps has long held that a wage subsidy, paid directly to low-wage workers, would be a better tool than either the minimum wage or the earned income tax credit to help improve the livelihoods of poor workers. For the wage subsidy to primarily benefit the workers themselves, what must be true about the relative elasticities of supply and demand for labor? Why? How would the price received by sellers and the price paid by buyers compare to the no-subsidy equilibrium?