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Suppose the government implemented a policy for a maximum wage that was below the equilibrium wage. What would you expect to have to the wage
Suppose the government implemented a policy for a maximum wage that was below the equilibrium wage. What would you expect to have to the wage prevalent in the market, and to the amount of labour employed? Select one: a. Wage falls, and the amount of employment increases. b. Wage increases, and the amount of employment also increases.
c. Wage increases, and the amount of employment falls. d. No change in either the wage or employment. e. Wage falls, and the amount of employment also falls
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