Economics 9708 · AS & A Level · Long-run costs and economies of scale

Long-run costs and economies of scale — practice question

The diagram illustrates how the introduction of a minimum wage (WM) affects the labour market. In which situation would this minimum wage be least helpful for workers who are already employed?

  • Aif demand for the product increases
  • Bif the elasticity of demand for the workers were high
  • Cif the elasticity of supply for the workers were high
  • Dif the productivity of the workers were to increase

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI