In the labor market,if the government imposes a minimum wage that is below the equilibrium wage,then
A) workers who wish to work at the minimum wage will have a difficult time finding jobs.
B) firms will hire fewer workers than without the minimum wage law.
C) some workers may lose their jobs as a result.
D) nothing will happen to the wage rate or employment.

Question

Quizplus · Accepted Answer

If the government imposes a minimum wage that is below the equilibrium wage, it will not affect the wage rate or employment levels because employers are already paying a higher wage than the minimum.

In the Labor Market,if the Government Imposes a Minimum Wage