Which of the following is not consistent with a minimum wage that is set above the equilibrium wage?
A)A labor surplus will result.
B)Some workers will end up with higher wages.
C)Some workers will end up unemployed.
D)There will be no unemployment.

Question

Quizplus · Accepted Answer

If the minimum wage is set above the equilibrium wage, there will be some workers who are unable to find employment due to the surplus of labor. This means that option A and C are consistent with a minimum wage above equilibrium. Option B is also consistent as some workers may benefit from the higher wage. However, option D is not consistent as there will always be some level of unemployment in the labor market with a minimum wage above equilibrium.

Which of the Following Is Not Consistent with a Minimum