How would an economist explain a teenager's continued unemployment where there exists a minimum wage?
A) The minimum wage law made it such that the quantity of labor willing to work at that wage was less than the quantity of labor demanded at that wage.
B) The minimum wage law made it illegal to hire teenagers because they likely would have been unable to work a minimum number of hours.
C) The minimum wage law made it such that the quantity of labor willing to work at that wage was greater than the quantity of labor demanded at that wage.
D) The minimum wage law made it such that the market had reached equilibrium.
E) The minimum wage law was nonbinding.

Question

Quizplus · Accepted Answer

The minimum wage law can lead to a situation where the quantity of labor (people willing to work) at that wage exceeds the quantity of labor demanded by employers. This can result in unemployment for some workers, including teenagers, as employers are not willing or able to hire everyone who is willing to work at the minimum wage.

How Would an Economist Explain a Teenager's Continued Unemployment Where