-Refer to Figure 17.2.If the equilibrium wage $12 and a new minimum wage is set at $15,then

Question

Quizplus · Accepted Answer

Setting a new minimum wage above the equilibrium wage decreases the quantity demanded because employers are less willing to hire the same number of workers at a higher wage. Demand, as a concept, refers to the relationship between price and quantity demanded and does not rise or fall with the price change; instead, the quantity demanded decreases.