A binding minimum wage will increase the income of Question 7 options: A. all workers. B. potential workers seeking employment. C. only those workers in jobs that would normally pay less than minimum wage. D. only those workers in jobs that would normally pay more than minimum wage. E. no workers.

Question

Business

Garrett Hoffman

27 November, 21:19

A binding minimum wage will increase the income of Question 7 options: A. all workers. B. potential workers seeking employment. C. only those workers in jobs that would normally pay less than minimum wage. D. only those workers in jobs that would normally pay more than minimum wage. E. no workers.

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Answers (2)

Know the Answer?

Victoria Craig · Answer 1

The answer is D. Only those workers in jobs that would normally pa more than minimum wage

Explanation:

A minimum wage is binding if it is set above the equilibrium wage, with a binding minimum wage, adjustments are blocked and the market is prevented from allocating labour resources. A minimum wage is a price floor implemented by the government which ensures that an employer must pay a minimum rate of pay to an employee, and anything lower than this rate pay is illegal.

Nigel Conrad · Answer 2

D. only those workers in jobs that would normally pay more than minimum wage.

Explanation:

A minimum wage is a price floor implemented by the government, which ensures that an employer must pay a minimum rate of pay to an employee, and anything lower than this rate of pay is illegal. "A minimum wage is binding if it is set above the equilibrium wage.