Figure 20-5 -Refer to Figure 20-5. An effective minimum wage would be set at a level A)above W_o, and employment would rise above Q_o. B)above W_o, and employment would fall below Q_o. C)below W_o, and employment would rise above Q_o. D)below W_o, and employment would fall below Q_o.

Question

Quizplus · Accepted Answer

An effective minimum wage is set above the equilibrium wage (W_o), causing a surplus of labor, which leads to a decrease in employment below the equilibrium quantity (Q_o).

Figure 20-5 -Refer to Figure 20-5. an Effective Minimum Wage Would Be