Question

suppose the current equilibrium wage rate for housekeepers is​ $8.60 per hour. an increase in the minimum wage to​ $7.50 per hour leads to

Answer 1

Choices that is part of this question:

A. a shortage of housekeepers

B. no change in the market for housekeepers

C. a surplus of housekeepers

D. an increase in the qty. of housekeepers supplied

E. unemployment of housekeepers

Equilibrium wage rate is the wage rate wherein the demand meets the supply. However, it does not automatically imply that it is the actual rate given to the housekeeper.

For me, an increase in the minimum wage rate will lead to a D. an increase in the qty. of housekeepers supplied