Ceteris paribus,all of the following result when the minimum wage is raised and is above the equilibrium in a competitive market,except
A)Some workers lose their jobs.
B)There are fewer workers available to work.
C)Workers with a marginal revenue product below the minimum wage are worse off.
D)There are fewer jobs available.

Question

Quizplus · Accepted Answer

When the minimum wage is raised above the equilibrium in a competitive market, there will be a surplus of labor, meaning there will be more workers available than there are jobs. This may lead to some workers losing their jobs (A) and fewer jobs being available (D). Additionally, workers with a marginal revenue product below the minimum wage will be worse off (C) as their services will no longer be demanded by employers. However, the statement that there will be fewer workers available to work (B) is incorrect, as the surplus of labor implies that there will be an excess supply of workers.

Ceteris Paribus,all of the Following Result When the Minimum Wage