If the minimum wage exceeds the equilibrium wage, then: (a) the quantity demanded of labor will...
If the minimum wage exceeds the equilibrium wage, then:
(a) the quantity demanded of labor will exceed the quantity supplied.
(b) the quantity supplied of labor will exceed the quantity demanded.
(c) the minimum wage will not be binding.
(d) there will be no unemployment.
Homework Answers
ANSWER:
The correct answer is option b that is the quantity supplied of labor will exceed the quantity demanded. (as more workers will be willing to work then the number of workers that firms are willing to hire.)
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