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.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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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