Label the letters in the graph correctly. What is the overall negative consequence (effect) of setting a higher minimum wage on employment? cost of production?

Here's the solution to the extended response question: a) The labels for the graph are: I. Unemployment (or Excess Supply of Labour) II. Supply of Labour III. Demand for Labour b) The overall negative consequences of setting a higher minimum wage are: i. employment? A higher minimum wage leads to a decrease in employment (or an increase in unemployment) because firms demand less labor at the higher wage, while more people are willing to work. ii. cost of production? A higher minimum wage leads to an increase in the cost of production for businesses, as they have to pay more for their labor inputs. Last free one today — make it count tomorrow, or type /upgrade for unlimited.