Question
The graph to the bottom illustrates the markets for two different types of labor (labor market 1 with demand curve D1 and labor market 2
The graph to the bottom illustrates the markets for two different types of labor (labor market 1 with demand curve D1 and labor market 2 with demand curve D2) Suppose an identical minimum wage is imposed in both markets in which market will the minimum wage have the largest impact on employment? Why? A. Decrease employment more in labor market 2 because D1is flatter B. Increase employment more in labor market 1 because D1 is flatter C. Have the same effect in both labor markets because they have the same labor supply curve D. Decrease employment more in labor market 1 because D1 is flatter E. Decrease employment more in labor market 2 because D2 is steeper
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