Question
A labor market is initially in equilibrium at a wage rate of $15. Then a minimum wage of $14 is introduced. The effect of this
A labor market is initially in equilibrium at a wage rate of $15. Then a minimum wage of $14 is introduced. The effect of this will be
Select one:
a.unemployment occurring in this market.
b.labor supply out-weighing labor demand.
c.a down-ward pressure on the wage rate.
d.a deadweight loss.
e.market equilibrium prevailing.
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Managerial Economics Theory Applications and Cases
Authors: Bruce Allen, Keith Weigelt, Neil A. Doherty, Edwin Mansfield
8th edition
978-0393124491, 393124495, 978-0039391277, 393912779, 978-0393912777
