Suppose the federal government contemplates a new law that would create a national minimum wage of $10.00 per hour.
Which of the following statements are true?
A. Check everything that applies. In the absence of price controls, a surplus puts upward pressure on wages until they rise to the equilibrium.
B. Binding minimum wages increase the natural rate of unemployment.
C. If the minimum wage were set at $7.50, the market would still be able to reach equilibrium.
D. In this labor market, a minimum wage of $10.00 would be binding.