The higher the minimum wage is above the equilibrium wage, the:

Question

Quizplus · Accepted Answer

When the minimum wage is set above the equilibrium wage, it creates a surplus of labor supply, which leads to an increase in the number of low-skilled unemployed workers. Employers are less likely to hire additional employees at a higher wage, leading to unemployment or a decrease in the number of jobs available for workers. Therefore, as the minimum wage increases further above the equilibrium level, the number of low-skilled unemployed workers also increases.

The Higher the Minimum Wage Is Above the Equilibrium Wage