Question

How does the minimum wage affect the market for labor?

a. It may prevent the market for labor from clearing, causing unemployment.
b. It causes a shortage of labor.
c. It increases employment in all sectors.
d. It allows the market for labor to reach equilibrium quickly.

Answer 1

Answer:

I think it may be B

Explanation:

Because labours come to only gulfil their job which was occupied by the machines.Atleast for making machines labours are needed.so,as the machinenary increases they expect the labours to decrease.