What will happen in the labor market if the government requires that employers pay employees a higher wage for overtime hours than for regular work hours?
A)Labor demand will decrease because workers will cut back on work effort.
B)More workers will demand jobs, raising labor demand.
C)With extra pay, workers will not need extra hours.
D)Workers will be more willing to work additional hours.

Question

Quizplus · Accepted Answer

When employers are required to pay a higher wage for overtime hours, it makes working additional hours more attractive to employees, increasing their willingness to work extra time. This does not directly affect labor demand, which is determined by employers, but it does affect the supply of labor willing to work overtime.

What Will Happen in the Labor Market If the Government