what-are-the-potential-consequences-of-setting-a-minimum-wage-above-the-equilibr

Question

What are the potential consequences of setting a minimum wage above the equilibrium wage in the labor market?

Accepted Answer

Increased unemployment due to a surplus of labor.

Answer

No change in employment levels.

Answer

A decrease in the quality of labor supplied.

Answer

Increased employment as more workers are hired at higher wages.