If the minimum wage is set below the equilibrium wage rate, then the following will hold true: A) Wages will automatically increase in the market. B) There will be excess demand for labour in the market. C) The implementation of a minimum wage will have no impact. D) There will be an excess supply of labour in the market.
If the minimum wage is set below the equilibrium wage rate, then the following will hold true: A) Wages will automatically increase in the market. B) There will be excess demand for labour in the market. C) The implementation of a minimum wage will have no impact. D) There will be an excess supply of labour in the market.
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter4: Demand And Supply: Applications And Extensions
Section: Chapter Questions
Problem 6CQ
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If the minimum wage is set below the equilibrium wage rate, then the following will hold true:
A) Wages will automatically increase in the market.
B) There will be excess demand for labour in the market.
C) The implementation of a minimum wage will have no impact.
D) There will be an excess supply of labour in the market.
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