What happens when the minimum wage is above the equilibrium wage?

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asked Jan 11, 2024 120k views

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Nanobar · Answer 1 · 2024-01-16T22:55:58+0000

Answer:

A minimum wage set above the equilibrium wage rate creates a surplus of labor—the quantity of labor supplied exceeds the quantity of labor demanded. The minimum wage reduces employment so that it is less than the efficient amount.

What happens when the minimum wage is above the equilibrium wage?

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