what-is-the-likely-effect-on-the-labor-market-when-a-minimum-wage-is-set-above-t

Question

What is the likely effect on the labor market when a minimum wage is set above the equilibrium wage?

Accepted Answer

Surplus of labor leading to unemployment.

Answer

Decrease in supply of labor.

Answer

Increase in demand for labor.

Answer

Equilibrium wage remains unchanged.