Assume the minimum wage exceeds the market-clearing wage. If there is an increase in the supply of labor then the number of workers who are unemployed will , and the number of workers who are employed will .

Increase, Not change

Explanation:

The market-clearing wage is the equilibrium wage rate. The market-clearing wage is, therefore, the intersection point of the supply and demand curves for labor. It is the prevailing market wage rate acceptable by both the employers and employees.

If the minimum wage rate exceeds the market-clearing wage, it creates a surplus in the labor market. At a high wage rate, employers are not willing to hire workers because labor is inefficient. The marginal costs of labor exceed its marginal gains. An increase in the supply of labor means more workers are entering the job market. Should the wage rate remain above the equilibrium price, then more people will be jobless. Those already employed will not be affected by the increase in the supply of labor.  

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