what-happens-to-the-labor-market-when-the-minimum-wage-is-set-above-the-equilibr

Question

What happens to the labor market when the minimum wage is set above the equilibrium wage?

Accepted Answer

Labor surplus occurs, leading to higher unemployment.

Answer

Labor supply decreases, leading to fewer workers.

Answer

Labor demand increases, leading to more jobs.

Answer

Labor market remains unaffected.