-According to the above figure, if the government imposes a minimum wage equal to W_m, the effect will be A) a reduction in employment from Q_e to Q_m. B) an increase in employment from Q_e to Q_m. C) a decrease in labor supplied, from C to E. D) an increase in labor supplied, from A to E.

Question

Quizplus · Accepted Answer

A minimum wage set above the equilibrium wage (Wm) leads to a surplus of labor, reducing employment from Qe to Qm.

-According to the Above Figure, If the Government Imposes a Minimum