Question

Assume we want to compare minimum wage workers in two different industries: fast food and agriculture. If the fast-food industry has more elastic demand for the final product they produce compared with agriculture, then an increase in the minimum wage will lead to _______ layoffs in the fast-food industry compared to the agriculture industry.

Answer 1

fewer

Step-by-step explanation:

In the case of the fast-food industry there are fewer substitutes are available for labor and the same should be compared for the agriculture. Now if there is more substitutes so the labor supply elasticity should be more and if there are less substitutes the labor supply elasticity would be less

So as per the given situation, the fewer would be considered