In the minimum wage debate described in Question 25 above, some argue that the unemployment rate will rise even if no one is laid off from work due to the increased minimum wage. This argument assumes that
a. some wage earners will voluntarily quit working if their spouse earns more due to the wage increase.
b. the labor supply curve is positively sloped but not vertical.
c. the labor demand is elastic.
d. all of the above are true.
Answer: b. the labor supply curve is positively sloped but not vertical.