If adult workers and teenagers are complements, the elimination of the minimum wage for teenage workers would cause the demand for adult workers to:

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Business

Maximo Kaiser

3 September, 09:54

If adult workers and teenagers are complements, the elimination of the minimum wage for teenage workers would cause the demand for adult workers to:

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Answers (1)

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Danielle Horne · Answer 1

Increase

Explanation:

The elimination of minimum wage, means that the wage or "price" for teenage workers will decrease.

Next we can use the information that both type of workers are complements. Remembering that two goods are complements if the cross price elasticity is negative. This means that if the price of one good decreases the demand for the other will increase.

Since the price for teenage workers decreased by the elimination of minimum wage that will make the demand for adult workers to increase.