In a city where the equilibrium hourly wage for unskilled, entry-level workers is $11, the U.S. federal minimum wage of $7.25 will have no effect. It is a non-binding price floor. will have no effect. It is a non-binding price ceiling. will increase the equilibrium wage from $11 to something higher. will bring the equilibrium wage from $11 down to $7.25. will discourage unskilled workers from entering the labor market.

In a city where the equilibrium hourly wage for unskilled, entry-level workers is $11, the U.S. federal minimum wage of $7.25 will have no effect. It is a non-binding price floor. will have no effect. It is a non-binding price ceiling. will increase the equilibrium wage from $11 to something higher. will bring the equilibrium wage from $11 down to $7.25. will discourage unskilled workers from entering the labor market.

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter12: Labor Markets And Labor Unions

Section: Chapter Questions

Problem 1.1P

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