Author Question: If skilled and unskilled labor are substitutes, then an increased minimum wage would tend to A) ... (Read 119 times)

RRMR · **on:** Jun 29, 2018

If skilled and unskilled labor are substitutes, then an increased minimum wage would tend to

A) reduce the demand for both unskilled and skilled workers.
B) reduce the quantity demanded of unskilled workers and increase the demand for skilled workers.
C) reduce the demand for unskilled workers and increase the quantity demanded of unskilled workers.
D) reduce the quantity demanded for both unskilled and skilled workers.

Question 2

With price on the vertical axis and quantity on the horizontal axis, economists would draw an increase in supply as

A) a leftward shift in the supply curve.
B) a rightward shift in the supply curve.
C) a vertical supply curve.
D) any which way we like.