-(Exhibit: The Minimum Wage) If it is thought that wages for some workers are not "sufficient" and a minimum wage is established at W_m, which is a wage _______ , that means that _______ workers will now be hired.

Question

-(Exhibit: The Minimum Wage) If it is thought that wages for some workers are not sufficient and a minimum wage is established at W<sub>m</sub>, which is a wage _______ , that means that _______ workers will now be hired. A) ceiling; L<sub>2 </sub> B) floor; L<sub>1 </sub> C) floor; L<sub>2 </sub> D) ceiling; L<sub>3 </sub>

Quizplus · Accepted Answer

A minimum wage is a price floor, and if set above the equilibrium wage, it can lead to a surplus of labor, meaning fewer workers (L2) are hired compared to the equilibrium level.

-(Exhibit: the Minimum Wage) If It Is Thought That Wages