A trade union and employers set a minimum wage $(W_1)$ that lies above the market equilibrium wage $(W)$ in that industry. What effect does paying the minimum wage $(W_1)$ have?
- Ademand for workers will exceed the supply
- Bfewer workers will be employed
- Csome workers will continue to be paid at wage $W$
- Dworkers will be less willing to work for the minimum wage