As a politician,you would be more inclined to propose an increase in the minimum wage when you believe that the new minimum wage would
A) remain below the equilibrium wage and be binding.
B) remain above the equilibrium wage and be binding.
C) remain below the equilibrium wage and be nonbinding.
D) remain above the equilibrium wage and be nonbinding.
E) be equal to the equilibrium wage.

Question

Quizplus · Accepted Answer

An increase in the minimum wage that remains below the equilibrium wage would be nonbinding, meaning it would not affect the labor market, as employers are already paying above this rate.

As a Politician,you Would Be More Inclined to Propose an Increase