Suppose That the Equilibrium Wage in the Low- Skilled Labor

Multiple Choice

Suppose that the equilibrium wage in the low- skilled labor market is $6.25 per hour. Further, suppose the federal government raises the minimum wage to $6.00 an hour from its present level of
$5.15. The government's action of increasing the minimum wage will result in:

A) a shortage of low- skilled labor.
B) an increase in unemployment.
C) a decrease in unemployment.
D) neither a shortage nor a surplus of labor in the low- skilled labor market.