A minimum wage that is set below a market's equilibrium wage will result in
A. an excess demand for labor, that is unemployment.
B. an excess demand for labor, that is, a shortage of workers.
C. an excess supply of labor, that is unemployment.
D. None of the above is correct.

Usually, a minimum wage that is set below a market's equilibrium wage will result in an excess demand for labor, which is, a shortage of workers.

What is a market's equilibrium wage?

The equilibrium market wage refers to an intersection of the supply and demand for labor wage.

The minimum wage means the ceiling wage that must be paid to the labor.

Hence, when a minimum wage is set below a market's equilibrium wage, it will result in an excess demand for labor, which is, a shortage of workers.

Therefore, the Option B is correct

A minimum wage that is set below a market's equilibrium wage will result in A. an excess demand for labor, that is unemployment. B. an excess demand for labor, that is, a shortage of workers. C. an excess supply of labor, that is unemployment. D. None of the above is correct.

Respuesta :

What is a market's equilibrium wage?

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A minimum wage that is set below a market's equilibrium wage will result in
A. an excess demand for labor, that is unemployment.
B. an excess demand for labor, that is, a shortage of workers.
C. an excess supply of labor, that is unemployment.
D. None of the above is correct.