Assume that a new minimum wage is binding in Delaware for Leah's company and that at this new minimum wage rate, the quantity demanded for labor is less than at equilibrium. Which of the following statements must be true? The quantity demanded of labor will increase for Leah. Leah will pay the employees the equilibrium wage. Because the quantity supplied of labor is increased, Leah will hire many more employees. There will be a surplus of labor. Leah will have to either shutdown or increase the price of her goods dramatically.

Assume that a new minimum wage is binding in Delaware for Leah's company and that at this new minimum wage rate, the quantity demanded for labor is less than at equilibrium. Which of the following statements must be true? The quantity demanded of labor will increase for Leah. Leah will pay the employees the equilibrium wage. Because the quantity supplied of labor is increased, Leah will hire many more employees. There will be a surplus of labor. Leah will have to either shutdown or increase the price of her goods dramatically.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter16: The Markets For Labor, Capital, And Land

Section: Chapter Questions

Problem 13P

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