Problem
1. Explain why the deadweight loss from the minimum wage is larger if labor demand is relatively elastic.
2. How does the elasticity of labor supply affect the deadweight loss from the minimum wage? Specifically, if labor supply is more elastic, is the deadweight loss smaller or larger? What is the economic intuition behind your answer?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.