Question

What happens when wages are set above the equilibrium level by law?

a. firms tend to try to break the law and hire people at the equilibrium level.
b. firms employ more workers than they would at the equilibrium wage.
c. firms employ fewer workers than they would at the equilibrium wage.
d. firms hire more workers but for fewer hours than they would at the equilibrium wage?

Answer 1

C: firms employ fewer workers than they would at the equilibrium wage.

Step-by-step explanation:

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Answer 2

c. firms employ fewer workers than they would at the equilibrium wage.