Which of the Following Statements About a Legislated Minimum Wage

Multiple Choice

Which of the following statements about a legislated minimum wage is true?

A) In a competitive labour market,(if effective) it may increase wages and will increase employment.
B) In a monopsonistic labour market,(if effective) it may increase wage rates but it must decrease employment.
C) In a monopsonistic labour market,if set equal to the competitive wage,will increase wages and employment.
D) It will have the same wage and employment effects in competitive and monopsonistic labour markets.
E) It will have no effect if the market is monopsonistic.