What determines the amount by which employment is reduced if a minimum wage is set $$\(5 \%\)$$ above the equilibrium market wage?
A.
B.
C.
D.
Exam No：9708_s25_qp_34 Year：2025 Question No：11
Answer:
B
Knowledge points:
8.3.2 factors affecting demand for labour in a firm or an occupation
8.3.4.1 definition and calculation of marginal revenue product
8.3.4.2 derivation of an individual firm’s demand for labour using marginal revenue product
8.3.8.1 influence of trade unions on wage determination and employment in a labour market
8.3.8.2 influence of government on wage determination and employment in a labour market using a national minimum wage
8.3.8.3 influence of monopsony employers on wage determination and employment in a labour market
Solution:
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