Which is the most likely result of imposing a minimum wage above a market's equilibrium wage

Question

Quizplus · Accepted Answer

When a minimum wage is imposed above the equilibrium wage, it creates a situation where the cost of hiring increases for the employers. This results in employers reducing the quantity of labour demanded, which leads to unemployment. At the same time, the higher wage encourages more people to join the labour force, increasing the quantity of labour supplied. This creates a surplus of labour, also known as unemployment. Therefore, choice A is the most likely result.

Which Is the Most Likely Result of Imposing a Minimum