Which of the following is true of minimum-wage laws?
A)They affect skilled workers' wages.
B)They create above-equilibrium wages for some unskilled workers.
C)They create a shortage of unskilled labor.
D)They negatively affect the employment of skilled workers.

Question

Quizplus · Accepted Answer

Minimum-wage laws set a floor on wages, which can lead to above-equilibrium wages for some unskilled workers, potentially resulting in unemployment for those whose labor is valued below the minimum wage.

Which of the Following Is True of Minimum-Wage Laws