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Question
In an economy with two distinct sectors, the imposition of a minimum wage above the competitive equilibrium wage in one of those sectors will:a. reduce the demand for labor in the non-minimum-wage sector.
b. cause workers to move to the non-minimum-wage sector.
c. decrease the equilibrium wage in the minimum-wage sector.
d. increase unemployment in the non-minimum-wage sector.
e. decrease employment in the non-minimum-wage sector.
Answer
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