In a Competitive Labour Market, a Minimum Wage Law Set

question 13

Multiple Choice

In a competitive labour market, a minimum wage law set above the equilibrium wage rate

• A) creates a surplus of labour.
• B) causes equality between the quantity of labour supplied and the quantity demanded.
• C) creates a shortage of labour.
• D) lowers the wage rate paid to workers.
• E) has no impact.

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Definitions:

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