-Refer to the figure above. If the government imposes a minimum wage in this market, the minimum wage will be________ than the equilibrium wage rate of W* and will create a ________of workers.

Question

Quizplus · Accepted Answer

A minimum wage set by the government is typically above the equilibrium wage rate to ensure workers receive a living wage. This higher wage can lead to a surplus of workers, as more people are willing to work at the higher wage than there are jobs available, creating unemployment.

-Refer to the Figure Above