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Figure: The Demand for Bricklayers
-(Figure: The Demand for Bricklayers)Use Figure: The Demand for Bricklayers.The equilibrium market wage for bricklayers is $100 a day,but a minimum wage of $130 a day for bricklayers is set by the government.As a result:
A)6 workers will now be hired by the firm.
B)three workers who would have been employed at the previous $100 market wage are now unemployed.
C)all bricklayers are better off.
D)construction firms will shut down.

Question

Use the following to answer question:
Figure: The Demand for Bricklayers 
-(Figure: The Demand for Bricklayers)Use Figure: The Demand for Bricklayers.The equilibrium market wage for bricklayers is $100 a day,but a minimum wage of $130 a day for bricklayers is set by the government.As a result:
A)6 workers will now be hired by the firm. 
B)three workers who would have been employed at the previous $100 market wage are now unemployed. 
C)all bricklayers are better off. 
D)construction firms will shut down.

Quizplus · Accepted Answer

At the minimum wage of $130, firms will only be willing to hire 4 workers, while 7 workers will be willing to work. This creates a surplus of labor, leading to three workers being unemployed.

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