If the government imposes a minimum wage which is lower than the equilibrium wage rate in the market then this would have the following effect: A) The market will not clear and quantity of labour supplied will be greater than the quantity of labour demanded. B) The market will not clear and quantity of labour supplied will be smaller than the quantity of labour demanded. C) The market may or may not clear – more information is needed before predictions can be made. D) The market will clear and the quantity of labour demanded will be equal to the quantity of labour supplied.

If the government imposes a minimum wage which is lower than the equilibrium wage rate in the market then this would have the following effect: A) The market will not clear and quantity of labour supplied will be greater than the quantity of labour demanded. B) The market will not clear and quantity of labour supplied will be smaller than the quantity of labour demanded. C) The market may or may not clear – more information is needed before predictions can be made. D) The market will clear and the quantity of labour demanded will be equal to the quantity of labour supplied.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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