-If the Minimum Wage Is Set Above the Equilibrium Wage

question 37

Multiple Choice

-If the minimum wage is set above the equilibrium wage, after taking into account the resources lost in job search, the firms' surplus ________ and the workers' surplus ________.

• A) decreases; decreases
• B) increases; decreases.
• C) increases; increases
• D) does not change; decreases
• E) decreases; increases