A trade union and employers set a minimum wage ($W_1$) that lies above the market equilibrium wage ($W$) for 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