-(Exhibit: The Minimum Wage) Instituting a minimum wage causes a _______ of workers amounting to _______ workers. A) shortage; L₂-L₃ B) surplus; L₁-L₂ C) surplus; L₃-L₂ D) shortage; L₁-L₃

Question

Quizplus · Accepted Answer

Instituting a minimum wage above the equilibrium wage leads to a surplus of workers because more workers are willing to work at the higher wage (L3) than there are jobs available (L2), resulting in L3-L2 surplus workers.

-(Exhibit: the Minimum Wage) Instituting a Minimum Wage Causes a _______