Figure 20-1
-Refer to Figure 20-1.If the government imposes a minimum wage of $8,then employment will decrease by

Question

Figure 20-1 
-Refer to Figure 20-1.If the government imposes a minimum wage of $8,then employment will decrease by

Quizplus · Accepted Answer

The minimum wage of $8 is above the equilibrium wage of $6. At this higher wage, firms are willing to hire fewer workers, leading to a decrease in employment. The decrease in employment is represented by the movement from point E to point F on the graph, which is a decrease of 2000 workers.

Figure 20-1 -Refer to Figure 20-1.If the Government Imposes a Minimum Wage