Markus is a low-skilled worker who washes dishes in a local restaurant.He is worried about a proposed increase in the minimum wage because price
A)floors tend to create shortages.
B)ceilings tend to create shortages.
C)floors tend to reduce quantity demanded.
D)ceilings tend to reduce quantity demanded.

Question

Quizplus · Accepted Answer

When the minimum wage is increased, the cost of hiring and employing workers also increases. Employers may respond to this by reducing the quantity of workers they hire or reducing their hours of work to compensate for the increased wages. This means that the quantity demanded of low-skilled workers (such as Markus) may actually decrease as a result of the minimum wage increase. Hence, floor tend to reduce quantity demanded.

Markus Is a Low-Skilled Worker Who Washes Dishes in a Local