A minimum wage results in:

Name: A minimum wage results in:
Brand: Quizplus
Rating: 4.9 (45 reviews)

Question

Quizplus · Accepted Answer

A minimum wage set above the market clearing wage will result in unemployment because it creates a surplus of labor (more workers than jobs available). Employers will not be able to hire as many workers at the higher wage, leading to job losses. Market equilibrium would only occur if the minimum wage was set at the market clearing wage, and a minimum wage would not result in a shortage of workers.

A Minimum Wage Results In