If the wage is kept above the equilibrium level because of minimum-wage laws, then the result is unemployment; if the wage is kept above the equilibrium level for some other reason, the result need not be unemployment.

Question

Quizplus · Accepted Answer

If the wage is kept above the equilibrium level, regardless of the reason, it typically results in unemployment because the quantity of labor supplied exceeds the quantity of labor demanded.

If the Wage Is Kept Above the Equilibrium Level Because