A Minimum Wage Law (That Sets the Minimum Wage Above

Multiple Choice

A minimum wage law (that sets the minimum wage above the equilibrium wage) can be expected to

A) clear the market for unskilled workers.
B) increase the number of unskilled workers employed.
C) increase the number of firms in those industries where the law is effective.
D) reduce the number of unskilled workers employed and/or reduce the number of hours worked by unskilled workers.
E) all of the above