What will be the economic result of new legislation increasing the minimum wage above the equilibrium price of labor? the cost of labor for employers will decrease. the number of workers employed will decrease. the output of the typical worker will decrease. the number of workers seeking employment will decrease

The correct answer from the provide options is the number of workers employed will decrease.

Explanation:

-A legislation that will result in an increase of the minimum wage above the equilibrium price of labor will result in an imbalance in the labor market. There will be an increase in the quantity of labor being offered by the workers ( an increase in the number of workers seeking employment) due to the favorable wages whereas firms will be unwilling to pay workers the new minimum wage. This eventually leads to a surplus in supply of labor.

-Consequently, firms will reduce the labor utilized ( the number of workers they absorb) and some may even eliminate part of their labor to offset the increased wage expenses (layoff some workers in order to reduce their wage bill) . This will result in an increase in unemployment.

going on the gulag might you to find a better answer for that problem

answer; ///product strategy;