What happens when wages are set by law above the equilibrium level?
a. Firms employ fewer workers than they would at the equilibrium wage.
b. Firms employ more workers than they would at the equilibrium wage.
c. Firms tend to try to break the law and hire people at the equilibrium level.
d. Firms hire more workers but for fewer hours than they would at the equilibrium wage.
Ans: a. Firms employ fewer workers than they would at the equilibrium wage.
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