If there is a floor on wages created by a minimum wage, union contracts, or other factors, then a decline in t

Question

If there is a floor on wages created by a minimum wage, union contracts, or other factors, then a decline in the marginal productivity of low-skilled workers will ______ the demand for low-skilled workers and ________ the number of unemployed workers.

A. increase; increase

B. increase; decrease

C. decrease; decrease

D. decrease; increase

E. decrease; leave unchanged

Answer 1

D, decrease, increase