Consider the Effect of a Minimum Wage Imposed in an Unregulated

question 117

Multiple Choice

Consider the effect of a minimum wage imposed in an unregulated labour market. Which of the following statements is correct?
I. A minimum wage set above the equilibrium wage increases the quantity of labour supplied.
Ii. A minimum wage set above the equilibrium wage increases the supply of labour.
Iii. A minimum wage set above the equilibrium wage decreases the demand for labour.

• A)i only
• B)ii only
• C)iii only
• D)ii and iii only
• E)i, ii, and iii

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