If the minimum wage is above the current equilibrium wage in a labor market, moving from the equilibrium wage to the minimum wage will:

Question

Quizplus · Accepted Answer

When the minimum wage is set above the equilibrium wage, it increases the cost of labor for employers. This typically leads to higher wages for those who remain employed, but can also result in reduced employment opportunities as employers may hire fewer workers or reduce hours to offset the increased labor costs.

If the Minimum Wage Is Above the Current Equilibrium Wage