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Economic Elasticity

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Under what elasticity conditions would the following be true:

"Increasing the minimum wage will result in a decrease in employment for workers who now earn less than the new minimum wage"?

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Under what elasticity conditions would the following be true:

"Increasing the minimum wage will result in a decrease in employment for workers who now earn less than the new minimum wage"?

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This is a controversial issue among economists. Many believe that an increase in minimum wage will cause unemployment, and others believe that the opposite is true. The Department of Labor conducted a study regarding this matter within the past few years, but many believe the study is biased to favor a minimum wage increase without being able to study the results of the increase in an unbiased manner, since it was conducted by the Department of Labor. When we consider elasticity of unemployment, we have to consider how changes in the ...

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