-Refer to Figure 17.2.If the equilibrium wage $12 and a new minimum wage is set at $15,then ________ hours of labor will be employed.

Question

Quizplus · Accepted Answer

When a minimum wage is set above the equilibrium wage, it typically results in a surplus of labor, meaning fewer hours of labor will be employed than at equilibrium. If the equilibrium wage is $12 and the minimum wage is set at $15, the quantity of labor demanded will decrease to 25,000 hours, as indicated by the demand curve in Figure 17.2.