When the minimum wage rises in a competitive labour market, the number of jobs available to workers qualified for such jobs:
A)is constant.
B)does not increase.
C)decreases.
D)increases.

Question

Quizplus · Accepted Answer

According to the classical economic theory of supply and demand, if the minimum wage increases in a competitive labor market, the cost of labor increases for employers. As a result, employers are likely to reduce the number of jobs available to workers to cut down on labor costs. This means that fewer workers will be able to find employment. Therefore, the number of jobs available to workers qualified for such jobs decreases when the minimum wage rises in a competitive labor market.

When the Minimum Wage Rises in a Competitive Labour Market