A decrease in the minimum wage contributes to reduce unemployment if the minimum wage is currently above the equilibrium wage. contributes to reduce unemployment if the minimum wage is currently below the equilibrium wage. decreases the quantity of labor demanded but increases the quantity of labor supplied. increases both the quantity demanded and the quantity supplied of labor.

A decrease in the minimum wage contributes to reduce unemployment if the minimum wage is currently above the equilibrium wage. contributes to reduce unemployment if the minimum wage is currently below the equilibrium wage. decreases the quantity of labor demanded but increases the quantity of labor supplied. increases both the quantity demanded and the quantity supplied of labor.

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter11: Labor Markets

Section: Chapter Questions

Problem 18SQ

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When the minimum wage is set above the equilibrium market wage, there will be an excess demand for labor at the minimum wage. it will have no effect on the quantity of labor employed. there will be an excess supply of labor at the minimum wage. the quality of the labor force will rise.
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an increase in the minimum wage can be expected to cause: 1-surplus of labor 2-shortage of labor 3-shift in the labor supply curve 4-shift in the labor demand curve Choose the right answer
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