Choice "A" is correct. As illustrated in the graph, a minimum wage that is set above the equilibrium wage results in a decrease in the quantity demanded of labor (falls to LD), an increase in the quantity supplied of labor (increases to LS), and a decrease in total employment (total employment falls from L* to LD).Choices "c", "d", and "b" are incorrect. They are all true statements, making choice "A" is the only correct answer.
