If the Minimum Wage Is Set Above the Equilibrium Wage,after

question 113

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

---

Definitions:

Purchase Decisions

The process by which consumers decide what, when, and how to buy a product or service.

Psychological

Refers to the mental and emotional state of an individual, stemming from the brain's function and affecting behavior and perception.

Compensatory Decision Rule

A decision-making process where consumers evaluate products and services by balancing good and bad features against each other.

Noncompensatory Decision Rule

A decision-making strategy where an option is rejected if it fails to meet at least one important criterion, regardless of its merits in other areas.