An economics question? Please help?

For a given labor supply, would the potential unemployment impact of an increase in the minimum wage be greater in the case of elastic or inelastic demand for labor? Explain why, using hypothetical numbers to illustrate your case.

Answer:
The impact on unemployment would be greater if the demand for labor was elastic. Inelastic demand would mean that no matter how much the minimum wage was, employers would still be more likely to pay it. Elastic demand means the cost of labor would have a large effect on the number of workers hired.
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elastic demand for labor means a change in wages results in a large change in demand. So lots more unemployed.

inelastic demand for labor means a change in wages results in a small change in demand. So not a big change to unemployed.
Elasticicy of demand for labor measures the sensitivity of the quantity of labor demanded to an increase in the price of labor (i.e., the wage rate).

If the demand for labor is elastic, then an x% increase in the wage rate decreases the quantity of labor demanded by more than x%. But if the demand for labor is inelastic, then an x% increase in the wage rate decreases the quantity of labor demanded by less than x%.

Accordingly, an increase in the minimum wage reduces the quantity of labor demanded more when the demand for labor is elastic than it does when the demand is inelastic.

So an increase in the minimum wage increases unemployment more when the demand for labor is elastic than it does when the demand for labor is inelastic.

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