Author Question: If an increase in the government-imposed minimum wage pushes the price (wage) of unskilled labor ... (Read 81 times)

ap345 · **on:** Jun 30, 2018

If an increase in the government-imposed minimum wage pushes the price (wage) of unskilled labor above market equilibrium, which of the following will most likely occur in the unskilled labor market?
a. An increase in quantity of unskilled labor demanded.
b. A decrease in the quantity of unskilled labor supplied.
c. A shortage of unskilled labor.
d. A surplus of unskilled labor (unemployment).

Question 2

If a government-imposed price floor legally sets the price of milk above market equilibrium, which of the following will most likely happen?
a. The quantity of milk demanded will increase.
b. The quantity of milk supplied will decrease.
c. There will be a surplus of milk.
d. There will be a shortage of milk.