A result of minimum wage is unemployment. With respect to the labour market, this is a case of .

excess demand

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excess supply

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shortage

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Solution

The correct option is B excess supply
When the minimum wage is above the equilibrium wage in the labour market, the firms would demand less labour and the workers would be willing to supply more labour. This will be a case of excess supply.

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A result of minimum wage is unemployment. With respect to the labour market, this is a case of .

The correct option is B excess supplyWhen the minimum wage is above the equilibrium wage in the labour market, the firms would demand less labour and the workers would be willing to supply more labour. This will be a case of excess supply.

The correct option is B excess supply
When the minimum wage is above the equilibrium wage in the labour market, the firms would demand less labour and the workers would be willing to supply more labour. This will be a case of excess supply.