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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