A minimum wage set above the equilibrium wage in a labour market can cause

a shortage of workersCorrect answerYour answera fall in the wageCorrect answerYour answerno change in the labour marketCorrect answerYour answermore workers seeking jobs than employers want to hireCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer D

Correct answer: D

A minimum wage is a price floor in the labour market.
Above equilibrium, more labour is offered than demanded: a surplus of labour.

Concept: Minimum wage as a floor
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsPrice ceiling and price floor

Practise this chapter →

Ten questions from Market Equilibrium & Price Controls, at your own pace.

Practise this chapter →

Ten questions from Market Equilibrium & Price Controls, at your own pace.

Practise this chapter All 52 questions in Market Equilibrium & Price Controls Revise the notes for Market Equilibrium & Price Controls

A minimum wage set above the equilibrium wage in a labour market can cause

Explanation