What is the economic impact of minimum wages on the market equilibrium for emplo

Question

What is the economic impact of minimum wages on the market equilibrium for employment ? What happens when wages demanded exceed those that companies are willing to pay? What happens when companies pay more than an anticipated for a position? What is the economic impact of minimum wages on the market equilibrium for employment ? What happens when wages demanded exceed those that companies are willing to pay? What happens when companies pay more than an anticipated for a position? What is the economic impact of minimum wages on the market equilibrium for employment ? What happens when wages demanded exceed those that companies are willing to pay? What happens when companies pay more than an anticipated for a position?

Explanation / Answer

Ans

Equilbrium level of employment decreases.

Demand for labour is less than supply and there is unemployment

Supply of labour rises more than demand

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