If the Minimum Wage Is Set Below the Equilibrium Wage,then

question 44

Multiple Choice

If the minimum wage is set below the equilibrium wage,then

• A)a labour shortage would occur.
• B)the demand for labour would be less than the supply.
• C)a labour surplus would occur.
• D)nothing would change.
• E)the demand for labour would be greater than the supply.

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Definitions:

Demand Curve

A graphical representation of the relationship between the price of a good and the quantity demanded for a given period.

Decrease In Demand

A shift in the demand curve to the left, indicating that consumers are willing to purchase less of a product at every price point.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good that consumers are willing to buy.

Market Demand Curve

A graphical representation showing the quantity of a particular good or service that consumers are willing and able to buy at various prices.