Economic theory implies that if a minimum wage is set above the equilibrium wage, there will _____ workers, and _____ will result.
A)not be enough; overemployment
B)be too many; underemployment
C)not be enough; unemployment
D)be too many; unemployment

Question

Quizplus · Accepted Answer

Setting a minimum wage above the equilibrium wage leads to a surplus of workers willing to work at that wage, but employers will hire fewer workers due to the higher cost, resulting in unemployment.

Economic Theory Implies That If a Minimum Wage Is Set