Question

Suppose that, before the mandate, the wage in this market was $2 above the minimum wage.

In this case, the wage rate with the employer mandate will beper hour, which will lead to in the level of employment and in the level of unemployment.

Now suppose that workers do not value the mandated benefit at all.

Which of the following statements are true under this circumstance? Check all that apply.

The supply curve of labor shifts to the left.

Employees are worse off than before the mandated benefit.

The wage rate will decline by less than $3.

Employers are neither better nor worse off than before the mandated benefit.

The equilibrium quantity of labor will remain unchanged.

Answer 1