Microeconomic theory suggests that imposing a price floor will lead to too little being purchased. In the labor market, this implies that implementing a minimum wage should increase unemployment.
Computer simulations based on this theory show imposing a minimum wage should increase unemployment. However, many studies suggest that in the real world, a minimum wage has little or no effect on the unemployment rate. In some cases, it appears that imposing a minimum wage actually decreases employment.
If one accepts that the minimum wage is not having the expected effect on unemployment, then:
Select TWO answers.