If the minimum wage is set above the equilibrium wage, then
A)more people will work than at the equilibrium wage.
B)the same number of people will work as at the equilibrium wage.
C)fewer people will want to work than at the equilibrium wage.
D)there will be fewer labor hours purchased by employers than at the equilibrium wage.

Question

Quizplus · Accepted Answer

If the minimum wage is set above the equilibrium wage, employers will be less willing to hire as many workers at the increased cost. This results in a decrease in the quantity of labor demanded, meaning fewer labor hours will be purchased by employers than at the equilibrium wage.

If the Minimum Wage Is Set Above the Equilibrium Wage