Question
Suppose, in an attempt to help low wage workers, the government sets a minimum wage above the free-market equilibrium price for labour. The result will
Suppose, in an attempt to help low wage workers, the government sets a minimum wage above the free-market equilibrium price for labour. The result will be
A) a continuation of the market-determined equilibrium price and quantity
B) a new free-market equilibrium at a higher wage and higher level of employment
C) the quantity supplied will exceed quantity demanded and there will be excess supply (unemployment) in the market.
D) the quantity demanded will exceed quantity supplied and there will be a excess demand in the market
E) increased government revenue
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