The number of unskilled workers employed before and after a change in the minimum wage is found to be the same.This means
A) the minimum wage change did not affect the unskilled labor market.
B) nothing,unless we also know that the number of hours worked by each worker has not changed.
C) the minimum wage could be below the equilibrium wage for unskilled labor.
D) either b or c
E) none of the above

Question

Quizplus · Accepted Answer

The fact that the number of unskilled workers employed before and after a change in the minimum wage is the same does not provide conclusive evidence about the effects of the wage change on the labor market. It is possible that the minimum wage was already below the equilibrium wage for unskilled labor, in which case the wage change would have no impact on employment levels. Alternatively, the wage change may have affected the number of hours worked by each worker, which would have implications for overall labor market outcomes. Therefore, the best choice is either B or C.

The Number of Unskilled Workers Employed Before and After a Change