Choice "D" is correct. A minimum wage that is set above the equilibrium wage will result in an excess supply (or surplus) of labor.Choice "c" is incorrect. The quantity demanded of labor at $7 is less than the quantity supplied, implying an excess supply not an excess demand.
Choice "a" is incorrect. An increase in the minimum wage causes a decrease in quantity demanded of labor, not a decrease in the demand (shift in demand) for labor.
Choice "b" is incorrect, per the above explanation.
