In advance of the recent increase in the U.S. minimum wage rate, the government

Question

In advance of the recent increase in the U.S. minimum wage rate, the government of the state of Arizona decided to boost its own minimum wage by an additional $1.60 per hour. This pushed the wage rate earned by Arizona teenagers above the equilibrium rate in the teen labor market. What is the predicted effect of this action by Arizona's government on each of the following?

a. The quantity of labor supplied by Arizona teenagers

b. The quantity of labor demanded by employers of Arizona teenagers.

c. The number of unemployed Arizona teenagers

Explanation / Answer

an additional $1.60 per hour quantity of labor supplied by Arizona teenagers will INCREASE quantity of labor demanded by employers of Arizona teenagers will DECREASE number of unemployed Arizona teenagers will SLIGHTLY DECREASE OR REMAIN SAME PLEASE RATE

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