A Binding Minimum Wage

question 100

Multiple Choice

A binding minimum wage

• A)alters both the quantity demanded and quantity supplied of labor.
• B)affects only the quantity of labor demanded;it does not affect the quantity of labor supplied.
• C)has no effect on the quantity of labor demanded or the quantity of labor supplied.
• D)causes only temporary unemployment because the market will adjust and eliminate any temporary surplus of workers.

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