Assume that a new minimum wage is binding in Delaware for Leah's company and that at this new minimum wage rate, the quantity demanded for labor is less than at equilibrium. Which of the following statements must be true? The quantity demanded of labor will increase for Leah. Leah will pay the employees the equilibrium wage. Because the quantity supplied of labor is increased, Leah will hire many more employees. There will be a surplus of labor. Leah will have to either shutdown or increase the price of her goods dramatically.

Assume that a new minimum wage is binding in Delaware for Leah's company and that at this new minimum wage rate, the quantity demanded for labor is less than at equilibrium. Which of the following statements must be true? The quantity demanded of labor will increase for Leah. Leah will pay the employees the equilibrium wage. Because the quantity supplied of labor is increased, Leah will hire many more employees. There will be a surplus of labor. Leah will have to either shutdown or increase the price of her goods dramatically.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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