Suppose a senator considers introducing a bill to legislate a minimum hourly wage of $7.50
Which of the following is true? Check all that apply
-In the absence of price controls, a shortage puts downward pressure on wages until they fall to equilibrium
-In this labor market, a minimum wage of $10.50 would be binding
-If the minimum wage is 7.50, the market will still be able to reach equilibrium
-Binding minimum wages causes cyclical unemployment