If the equilibrium wage is $10 an hour and the government sets a minimum wage of $8, there will be a shortage of labor.

Question

Quizplus · Accepted Answer

If the equilibrium wage is $10 an hour and the government sets a minimum wage of $8, it will not result in a shortage of labor as the wage rate is still above the minimum wage set by the government. However, it may affect the demand and supply of labor in the market leading to other economic effects.

If the Equilibrium Wage Is $10 an Hour and the Government