If you view a dollar's worth of consumer surplus (received by employers)equal to a dollar's worth of producer surplus (received by employees)then the minimum wage usually
A)increases consumer surplus more than it decreases producer surplus, for a positive net effect.
B)increases consumer surplus less than it decreases producer surplus, for a negative net effect.
C)decreases consumer surplus less than it increases producer surplus, for a positive net effect.
D)decreases consumer surplus more than it increases producer surplus, for a negative net effect.

Question

Quizplus · Accepted Answer

The minimum wage typically results in a decrease in consumer surplus (as it raises the cost of labor, potentially leading to higher prices for goods and services) and an increase in producer surplus (as it directly benefits employees with higher wages). However, the overall effect is often negative due to job losses and reduced employment opportunities, making D the correct choice.

If You View a Dollar's Worth of Consumer Surplus (Received