Use the following to answer questions:
-It is generally accepted that a binding minimum wage does NOT:
A) decrease the quantity of labour demanded.
B) increase unemployment.
C) increase the amount of labour supplied.
D) decrease the amount of labour supplied.

Question

Use the following to answer questions: 
-It is generally accepted that a binding minimum wage does NOT:
A) decrease the quantity of labour demanded. 
B) increase unemployment. 
C) increase the amount of labour supplied. 
D) decrease the amount of labour supplied.

Quizplus · Accepted Answer

A binding minimum wage typically increases the amount of labor supplied as more workers are willing to work at the higher wage, but it does not decrease the amount of labor supplied.

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