In a competitive labor market, when the government increase the minimum wage, the result is a(n)...
Question:
In a competitive labor market, when the government increase the minimum wage, the result is a(n) _____ in the quantity of labor supplied and a(n) _____ in the quantity of labor demanded.
a. increase, increase
b. increase, decrease
c. decrease, increase
d. decrease, decrease
Minimum Wage:
A minimum wage is the lowest legal wage that can be paid to employees. It is set by the government. In the United States, the current minimum wage is $7.25 per hour.
Answer and Explanation: 1
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Minimum Wage and its Effects on Employment
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Chapter 6 / Lesson 6
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Understand the effect of minimum wage on employment. Study wage employment graphs and how they work, and discover pros and cons of minimum wage increase effects.
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