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.
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.
