Suppose That a Labor Market Is Initially in Equilibrium

question 213

Multiple Choice

Suppose that a labor market is initially in equilibrium. If the minimum wage is set above the initial equilibrium wage rate

• A) all workers in the labor market will be better off, receiving a higher wage per hour.
• B) the labor supply curve will shift to the right.
• C) the quantity demanded of labor will decrease along the given labor demand curve.
• D) all of the above

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Definitions:

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