Asked by
HaMxA AsHfaQ
on Oct 25, 2024
Verified
A minimum wage policy induces an:
A) excess demand for labor.
B) excess supply of labor.
C) efficient market outcome.
D) elastic labor supply response.
Excess Supply
Occurs when the quantity of a good or service supplied is greater than the quantity demanded, often leading to a decrease in price.
Minimum Wage
The lowest legal salary that employers can pay their workers, established by government laws.
Labor Market
A marketplace where wages are determined, and workers are hired and fired.
- Investigate the influence of state policies such as tariffs, quotas, and minimum wage settings on market equilibrium, along with the surplus benefits to consumers and producers.
- Examine the effects of minimum wage regulations on employment dynamics.
Verified Answer
PM
Learning Objectives
- Investigate the influence of state policies such as tariffs, quotas, and minimum wage settings on market equilibrium, along with the surplus benefits to consumers and producers.
- Examine the effects of minimum wage regulations on employment dynamics.