If the Equilibrium Wage in a Competitive Labour Market Is

question 111

Multiple Choice

If the equilibrium wage in a competitive labour market is $9 per hour,and the government raises the minimum wage from $7 to $8 per hour,what will be the effect in this market?

• A)the level of employment will decrease
• B)unemployment will increase
• C)unemployment will decrease
• D)there will be no effect on employment
• E)the average wage paid to workers will increase

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