Question

If the minimum wage is set above the equilibrium wage, then Group of answer choices more people will work than at the equilibrium wage. the same number of people will work as at the equilibrium wage. fewer people will want to work than at the equilibrium wage. there will be fewer labor hours purchased by employers than at the equilibrium wage. none of the above

Answer 1

Answer:

there will be fewer labor hours purchased by employers than at the equilibrium wage. none of the above

Explanation:

Equilibrium in economics means balance. Equilibrium wage rate refers to the market wage rate where the quantity of labor supplied matches the labor demanded. It is the wage rate that employers are willing to pay, and workers are ready to accept each hour of labor. The equilibrium wage represents the intersection of labor demand and supply curves.

If the wage is set above the equilibrium rate, it will force employers to pay more than they are willing. Employers will be paying more to workers than the value they are receiving. The hiring of many workers will be uneconomical. Employers will hire fewer workers to keep their costs down.