The intersection of the labor market supply and market demand curves establishes the minimum wage.

Name: The intersection of the labor market supply and market demand curves establishes the minimum wage.
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Question

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The intersection of the labor market supply and market demand curves determines the equilibrium wage, which may or may not be the same as the minimum wage set by a government or employer. The minimum wage is a decision made outside of the market by a third party.

The Intersection of the Labor Market Supply and Market Demand