When a minimum wage is set above the equilibrium wage rate, . A. the supply of workers decreases B. job search activity decreases C. unemployment increases D. unemployment decreases

C. unemployment increases

Explanation: Equilibrium wage rate is the middle ground between supply and demand of labour. When minimum wage is set above the equilibrium wage rate, companies begin to cut down number of worker because their revenue cannot cover the extra amount of wages they as to pay for labour. Some companies might reduces their labour size while some might go out of business this will definitely increase unemployment in the market

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