If the market wage for fast-food restaurants is $4 and the government enforces a minimum wage of $7,the unemployment rate will

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When the government enforces a minimum wage that is higher than the market wage, employers will not be willing to hire as many workers because they will have to pay them more than they would in a free market. This will lead to a decrease in the quantity of labor demanded. At the same time, more people will be willing to work at the higher wage, leading to an increase in the quantity of labor supplied. The result will be a surplus of labor, or unemployment, as some workers will not be able to find jobs at the higher wage. Therefore, the unemployment rate will increase as the quantity of labor supplied increases and the quantity of labor demanded decreases, as described in choice A.

If the Market Wage for Fast-Food Restaurants Is $4 and the Government