A minimum wage law tends to

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A minimum wage law creates more unemployment in low-skill job markets because employers may not be willing or able to pay the higher mandated wage to low-skilled workers. In contrast, in high-skill job markets where the competitive wage is already above the minimum wage, there may be little to no impact on employment levels. Option A is incorrect because not all teenagers receive a higher wage due to minimum wage laws, and it depends on whether they are employed in low-skill or high-skill jobs. Option B is incorrect because a minimum wage set above the competitive equilibrium wage can lead to increased unemployment in low-skill job markets. Option C is also incorrect because the impact of a minimum wage law on unemployment levels is not solely determined by the skill level of the jobs.

A Minimum Wage Law Tends to