A minimum wage set above the equilibrium wage I. increases the supply of labor.
II) increases the quantity of labor supplied.
III) decreases the demand for labor.

Question

Quizplus · Accepted Answer

A minimum wage set above the equilibrium wage increases the quantity of labor supplied because more workers are willing to work at the higher wage, but it does not increase the overall supply of labor. It also decreases the demand for labor, as employers may hire fewer workers due to the higher wage cost.

A Minimum Wage Set Above the Equilibrium Wage I