-In the figure above,if the minimum wage is $8 per hour,then
A) resources used in job-search activity increase compared to the situation before the minimum wage.
B) it is legal to hire workers for a wage below the minimum wage because otherwise unemployment would result.
C) the deadweight loss is minimized.
D) Both answers A and B are correct.
E) Both answers B and C are correct.

Question

-In the figure above,if the minimum wage is $8 per hour,then
A) resources used in job-search activity increase compared to the situation before the minimum wage. 
B) it is legal to hire workers for a wage below the minimum wage because otherwise unemployment would result. 
C) the deadweight loss is minimized. 
D) Both answers A and B are correct. 
E) Both answers B and C are correct.

Quizplus · Accepted Answer

When a minimum wage is set above the equilibrium wage, it creates a surplus of labor (unemployment) because the quantity of labor supplied exceeds the quantity of labor demanded. This situation incentivizes individuals to invest more time and resources into job-search activities to secure one of the fewer available jobs, hence increasing the resources used in job-search activity.

-In the Figure Above,if the Minimum Wage Is $8 Per