-Refer to the figure above. If the government imposes a minimum wage in this market, employment will be________ than the equilibrium quantity of hours Q* and ________workers will benefit.

Question

Quizplus · Accepted Answer

Imposing a minimum wage above the equilibrium wage creates a surplus of labor, meaning there are more workers willing to work than there are jobs available, leading to lower employment than the equilibrium quantity. However, those who do get employed at the higher wage benefit from the increased wage rate.

-Refer to the Figure Above