If the equilibrium wage is $4 per hour and the minimum wage is $5.15 per hour, then a shortage of labor will exist.

Name: If the equilibrium wage is $4 per hour and the minimum wage is $5.15 per hour, then a shortage of labor will exist.
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When the minimum wage is set above the equilibrium wage, it creates a surplus of labor, meaning there are more people willing to work at that wage than there are jobs available, not a shortage.

If the Equilibrium Wage Is $4 Per Hour and the Minimum