The table below shows the competitive labour demand and labour supply schedules in a particular labour market.
-Refer to Table 14- 1. In a competitive labour market, a legislated minimum wage imposed at $4 per hour would
A) lead to unemployment of 500 units.
B) lead to an equilibrium wage higher than the competitive wage.
C) have no effect on the competitive equilibrium level of employment.
D) lead to an employment level lower than the competitive level.
E) lead to over- employment of 500 units.
Correct Answer:
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