Use the following to answer question(s): The Minimum Wage

-(Exhibit: The Minimum Wage) Instituting a minimum wage _______ the ________ labor and _______ the _______ labor.
A) decreases; supply of; increases; demand for
B) increases; the quantity supplied of; decreases; demand for
C) increases; the quantity supplied of; decreases; quantity demanded of
D) decreases; demand; increases; supply

Question

Use the following to answer question(s): The Minimum Wage
 
-(Exhibit: The Minimum Wage) Instituting a minimum wage _______ the ________ labor and _______ the _______ labor.
A) decreases; supply of; increases; demand for 
B) increases; the quantity supplied of; decreases; demand for 
C) increases; the quantity supplied of; decreases; quantity demanded of 
D) decreases; demand; increases; supply

Quizplus · Accepted Answer

Instituting a minimum wage increases the quantity supplied of labor (as more people are incentivized to work at that wage) and decreases the quantity demanded of labor (as some employers may choose to hire fewer workers or invest in automation instead). This ultimately leads to a decrease in the equilibrium quantity of labor employed, but an increase in the wage rate. B and D are incorrect because they have the wrong relationship between the change in wage/employment and the change in supply/demand. A is incorrect because it has the wrong direction for both changes.

Use the Following to Answer Question(s): the Minimum Wage