If the wage is free to adjust in response to market forces it will move to We, where the demand forlabour equals the supply. When the wage is above We, more labour will be presented for employment than firms in the industry can profitably hire. It will pay workers to lower their wages to obtain employment in the industry.
Answer:At $25 per hour there will be excess of labor supplied as more laborers are willing to work at high wages but not enough coffee shops are willing to hire at that wage
