Minimum wage laws cause unemployment because the legal minimum wage is set
A) below the market wage, causing labour demand to be greater than labour supply.
B) below the market wage, causing labour demand to be less than labour supply.
C) above the market wage, causing labour demand to be greater than labour supply.
D) above the market wage, causing labour demand to be less than labour supply.
E) too low.
Correct Answer:
Verified
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