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