If the minimum wage is set A. equal to the equilibrium wage, it will create a shortage of labor. B. equal to the equilibrium wage, it will create a surplus of labor. C. below the equilibrium wage, it will create unemployment. D. below the equilibrium wage, it will create a shortage of labor. E. above the equilibrium wage, it will create unemployment.
If the minimum wage is set A. equal to the equilibrium wage, it will create a shortage of labor. B. equal to the equilibrium wage, it will create a surplus of labor. C. below the equilibrium wage, it will create unemployment. D. below the equilibrium wage, it will create a shortage of labor. E. above the equilibrium wage, it will create unemployment.
Chapter4: Demand, Supply, And Markets
Section: Chapter Questions
Problem 7.15P
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If the minimum wage is set
equal to the equilibrium wage, it will create a shortage of labor.
equal to the equilibrium wage, it will create a surplus of labor.
below the equilibrium wage, it will create unemployment .
below the equilibrium wage, it will create a shortage of labor.
above the equilibrium wage, it will create unemployment.
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