Assume the market wage in industry A is $9/hour. If the government increases the minimum wage from $7.25/hour to $10/hour a. Firms in industry A will hire fewer workers b. Firms in industry A will hire more workers because the quantity of labor supplied will increase c. Firms in industry A will continue to hire the same number of workers d. A shortage of labor will exist at the new minimum wage
Assume the market wage in industry A is $9/hour. If the government increases the minimum wage from $7.25/hour to $10/hour a. Firms in industry A will hire fewer workers b. Firms in industry A will hire more workers because the quantity of labor supplied will increase c. Firms in industry A will continue to hire the same number of workers d. A shortage of labor will exist at the new minimum wage
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Assume the market wage in industry A is $9/hour. If the government increases the minimum wage from $7.25/hour to $10/hour
a. Firms in industry A will hire fewer workers
b. Firms in industry A will hire more workers because the quantity of labor supplied will increase
c. Firms in industry A will continue to hire the same number of workers
d. A shortage of labor will exist at the new minimum wage
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Introduction
Minimum wage is a price floor implemented by the government usually with the aim of increasing labor's welfare.
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