What would economists expect to happen if the government sets a minimum wage for adult employees?

Multiple choice question for Market. Select an option, then review the explanation below.

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Overall wages would decrease as companies attempt to reduce expensesEmployment opportunities for younger workers would declineBusinesses that rely on low-wage labor would face higher costs and increased pricesThe level of unemployment would rise

Explanation

Setting a minimum wage typically raises labor costs for firms that depend on inexpensive workers, leading to increased expenses and higher prices for their products or services.

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What would economists expect to happen if the government sets a minimum wage for adult employees?

Explanation

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