Effective minimum-wage laws will most likely
A)increase demand for labor.
B)create a surplus of labor.
C)increase incomes for all unskilled workers.
D)decrease incomes for all unskilled workers.

Question

Quizplus · Accepted Answer

Effective minimum-wage laws set the wage above the equilibrium level, leading to a surplus of labor because the quantity of labor supplied by workers exceeds the quantity of labor demanded by employers.

Effective Minimum-Wage Laws Will Most Likely