When a Minimum-Wage Law Forces the Wage to Remain Above

question 290

True/False

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the quantity of labor supplied is higher and the quantity demanded of labor is lower than at the equilibrium wage.

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Definitions:

Demand Curve

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

Demand Curve

A graph showing the relationship between the price of a good and the quantity of the good that consumers are willing and able to purchase at each price.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity supplied by producers.

Complement

A good or service that is used together with another, increasing demand for both as the use of one enhances the value or utility of the other.