Many people are concerned that the minimum wage is too low. They claim that a higher wage would reduce the number below the poverty level and not cause many existing workers to lose their jobs. This argument assumes that
a. the labor demand curve is very inelastic at low wage rates.
b. the labor supply curve is inelastic at all wage rates.
c. the labor supply curve is elastic at low wage rates.
d. the labor demand curve is elastic at low wage rates.
Answer: a. the labor demand curve is very inelastic at low wage rates.