Question: Using the competitive model, if the government sets a minimum wage for workers that is above the competitive wage, A) Wages would fall as firms

Using the competitive model, if the government sets a minimum wage for workers that is above the competitive wage,

A) Wages would fall as firms try to reduce labour costs.

B) Unemployment may decrease through a disemployment effect.

C) Unemployment may increase through a disemployment effect.

D) The total wage bill must rise.

E) The total wage bill must fall.

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