If minimum wages are set above the equilibrium wage in the market,then the number of workers hired will be _____ the number of people who are willing to work at the prevailing wage.
A)less than
B)greater than
C)equal to
D)less than,greater than,or equal to

Question

Quizplus · Accepted Answer

The minimum wage law results in an excess supply of labor, which means that more people are willing to work at the prevailing wage than there are job openings available. As a result, employers will hire fewer workers and there will be a surplus of job seekers. Therefore, the number of workers hired will be less than the number of people who are willing to work at the prevailing wage.

If Minimum Wages Are Set Above the Equilibrium Wage in the Market,then