When a minimum wage is set above the equilibrium wage rate
A) the supply of low-skilled workers decreases and the supply curve shifts rightward.
B) unemployment increases.
C) search activity decreases.
D) the supply of low-skilled workers increases and the supply curve shifts leftward.
Correct Answer:
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Q88: Q89: The minimum wage Q90: A minimum wage set above the equilibrium Q91: A minimum wage set above the equilibrium Q92: A minimum wage set above the equilibrium Q94: A minimum wage is a government-imposed price Q95: If policy makers believe that the equilibrium Q96: When the minimum wage is set above Q97: A minimum wage Q98: A minimum wage set above the equilibrium
A) is type of price
A) is a price ceiling
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