-Refer to the above figure.A minimum wage has been set at $\mathrm { W } _ { \mathrm { M } }$ .The amount of unemployment is
A)zero.
B)at $\mathrm { Q } _ { \mathrm { e } }$ .
C) $\mathrm { Q } _ { \mathrm { S } }$ minus $\mathrm { Q } _ { \mathrm { D } }$ .
D)not computable from the information given.

Question

-Refer to the above figure.A minimum wage has been set at $\mathrm { W } _ { \mathrm { M } }$ .The amount of unemployment is
A)zero. 
B)at $\mathrm { Q } _ { \mathrm { e } }$ . 
C) $\mathrm { Q } _ { \mathrm { S } }$ minus $\mathrm { Q } _ { \mathrm { D } }$ . 
D)not computable from the information given.

Quizplus · Accepted Answer

The minimum wage set above the equilibrium wage causes a surplus of labor, where the quantity supplied ($Q_S$) exceeds the quantity demanded ($Q_D$), resulting in unemployment equal to $Q_S - Q_D$.

-Refer to the Above Figure WM\mathrm { W } _ { \mathrm { M } }WM​

-Refer to the Above Figure $\mathrm { W } _ { \mathrm { M } }$