At the minimum wage (set above the equilibrium wage),
A)all individuals who end up working are paid less than if they were paid the equilibrium wage.
B)none of the workers will lose there jobs or find themselves working fewer hours.
C)none of the individuals who end up working are paid more than if they were paid the equilibrium wage.
D)there will be fewer people working (or fewer labor hours demanded)than at the equilibrium wage.

Question

Quizplus · Accepted Answer

At the minimum wage, employers are required to pay a wage higher than the equilibrium wage, which results in an excess supply of labor. This means that there are more people willing to work than there are jobs available or labor hours demanded. As a result, some workers will not be hired or will have their hours reduced, leading to unemployment or underemployment.

At the Minimum Wage (Set Above the Equilibrium Wage)