5) If the minimum wage is above the equilibrium wage, then 1 Point the quantity demanded of labor will be equal to the quantity supplied. the quantity demanded of labor will be greater than the quantity supplied. the quantity demanded of labor will be less than the quantity supplied. anyone who wants a job at the minimum wage can find one.
Added by Noelia A.
Close
Your feedback will help us improve your experience
Crystal Wang and 91 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
If the minimum wage is set A. equal to the equilibrium wage, it will create a shortage of labor. B. equal to the equilibrium wage, it will create a surplus of labor. C. below the equilibrium wage, it will create unemployment. D. below the equilibrium wage, it will create a shortage of labor. E. above the equilibrium wage, it will create unemployment.
Crystal W.
In the labour market, workers would like to receive higher wages and firms would like to pay lower wages a. suppose that workers succeed in having a minimum wage established above the equilibrium wage. what will happen to the number of workers employed compared to the original equilibrium? b. suppose that firms succeed in having a maximum wage established below the equilibrium wage. what will happen to the number of workers employed compared to the original equilibrium?
Rashmi S.
How do minimum wages affect wages, employment, and unemployment? In a competitive labor market, the demand for workers is given as QD = 10,000 - 100W, and the supply of workers is given as QS = 2,000 + 1,900W, where Q is the quantity of workers employed and W is the hourly wage. What is the initial equilibrium wage and employment level? Suppose that the government decides that $5 per hour is the minimum allowable wage in any market. How would this new minimum wage alter this market? What would the new employment level be? What would happen to total payments to labor? Would there be any excess supply of labor? If so, how much?
Derek F.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
Watch the video solution with this free unlock.
EMAIL
PASSWORD