Question

A minimum wage set above the equilibrium wage will​ ________ the quantity of labor demanded and​...

A minimum wage set above the equilibrium wage will​ ________ the quantity of labor demanded and​ ________ the quantity of labor supplied.

A.

​increase; decrease

B.

​decrease; decrease

C.

​decrease; increase

D.

​increase; increase

E.

not​ change; not change

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

A minimum wage set above the equilibrium wage will​ decrease the quantity of labor demanded and​ increase the quantity of labor supplied.

Let's understand why

Firstly when the labor market is in equilibrium then demand and supply of labor both are equal which means what firms are willing to pay and what workers are willing to accept both are equal.

If minimum wage is above the equilibrium wage rate then as a result the firm will demand less labor because of the increased wage rate and the supply of labor will increase because now the wage rate is increased hence workers are now willing to work.

This will create unemployment as a result.

Hence a minimum wage set above the equilibrium wage will​ decrease the quantity of labor demanded and​ increase the quantity of labor supplied.

Option C is correct

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1. An increase in the minimum wage is likely to ___ the quantity of labor demanded...
1. An increase in the minimum wage is likely to ___ the quantity of labor demanded and at the same time is likely to ___ the quantity of labor supplied. a.) decrease : increase b.) increase : decrease c.) increase : increase d.) decrease : decrease 2. The consumer price index increased from 120 to 132. if you received a raise equal to 10% during this time period then your real income has decreased. T/F 3. Retired people who are...
If the minimum wage were currently above the equilibrium wage, then a decrease in the minimum...
If the minimum wage were currently above the equilibrium wage, then a decrease in the minimum wage that kept it above equilibrium would _____ the _______ of labor. a.increase, shortage b.decrease, surplus c.increase, surplus d.decrease, shortage
If the federal minimum wage is​ abolished, the labor force participation rate​ ____________. A. will increase....
If the federal minimum wage is​ abolished, the labor force participation rate​ ____________. A. will increase. B. will not change. C. will decrease. D. may​ increase, decrease, or not change.
1. Imagine the labor supply curve is perfectly inelastic. A minimum wage set above the market...
1. Imagine the labor supply curve is perfectly inelastic. A minimum wage set above the market clearing wage causes the most unemployment when the labor demand curve is A. Perfectly elastic B. Somewhat elastic C. Perfectly inelastic D. A minimum wage set above the market clearing wage will not cause unemployment because the labor supply curve is perfectly inelastic. 2. Suppose the price of a large basket of goods and services is $103,000 this year. If it is $111,000 next...
Why does the government intervene in the labor market and impose minimum wage? Is this government...
Why does the government intervene in the labor market and impose minimum wage? Is this government intervention a price floor or price ceiling? Using economic terms, what happens to quantity demanded and quantity supplied with minimum wage? Who are the winners and losers from minimum wage?
The substitution effect is present: Group of answer choices when wages decline, the quantity demanded of...
The substitution effect is present: Group of answer choices when wages decline, the quantity demanded of leisure declines, and workers increase the quantity of labor supplied. when wages rise, the quantity demanded of leisure declines, and workers increase the quantity of labor supplied. when wages rise, the quantity demanded of leisure increases, and workers decrease the quantity of labor supplied. when workers decrease their quantity of labor supplied.
Equilibrium: Question 1 options: a) occurs when the quantity demanded is equal to the quantity supplied....
Equilibrium: Question 1 options: a) occurs when the quantity demanded is equal to the quantity supplied. b) occurs when all the consumers are fully satisfied. c) can never occur in a capitalist economy. d) is also called the market-creating price. The demand curve represents Question 3 options: consumer's marginal opportunity cost producer's marginal opportunity cost consumer's marginal willingness to pay consumer's marginal propensityto consume An effective price ceiling leads to: Question 14 options: a) quantity supplied equal to quantity demanded....
Production function Labor market Labor hours (millions) Real GDP (millions of 2009 dollars) Real wage rate...
Production function Labor market Labor hours (millions) Real GDP (millions of 2009 dollars) Real wage rate (dollars per hour) Quantity of labor demanded Quantity of labor supplied 0 0 (millions of hours per year) 1 10 10 1 5 2 19 9 2 4 3 27 8 3 3 4 34 7 4 2 5 40 6 5 1 Use the information set out in the tables: Calculate the quantity of labor employed, the real wage rate, and potential GDP....
If the price of a product is above equilibrium, which of the following statements is true?...
If the price of a product is above equilibrium, which of the following statements is true? a The quantity supplied will exceed the quantity demanded. b The quantity demanded will exceed the quantity supplied. c A shortage of the product exists. d None of the choices are correct.
1. Why does a price ceiling set above the equilibrium price have no effect on the...
1. Why does a price ceiling set above the equilibrium price have no effect on the market? 2. Why is an increase in the minimum wage apt to affect teenagers more than other age groups? 3. Suppose that you are a manager working for Yum in the Taco Bell division. Taco Bell employs many employees at the minimum wage. If the minimum wage is already set above the equilibrium wage rate and then the government raises it still higher, what...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT