Use the table below to answer the following questions.
Table 6.2.1
-Table 6.2.1 gives the supply and demand schedules for teenage labour in Genoa City.In an unregulated market,
A)there is no teenage unemployment and the wage rate is $16 per hour.
B)there is no teenage unemployment and the wage rate is $15 per hour.
C)teenage unemployment is 400 hours and the wage rate is $16 per hour.
D)teenage unemployment is 400 hours and the wage rate is $15 per hour.
E)the minimum wage is $17 per hour.

Question

Use the table below to answer the following questions.
Table 6.2.1 
-Table 6.2.1 gives the supply and demand schedules for teenage labour in Genoa City.In an unregulated market,
A)there is no teenage unemployment and the wage rate is $16 per hour. 
B)there is no teenage unemployment and the wage rate is $15 per hour. 
C)teenage unemployment is 400 hours and the wage rate is $16 per hour. 
D)teenage unemployment is 400 hours and the wage rate is $15 per hour. 
E)the minimum wage is $17 per hour.

Quizplus · Accepted Answer

In an unregulated market, the wage rate will adjust to reach equilibrium where the quantity of teenage labour supplied and demanded are equal. In this case, that occurs when the wage rate is $15 per hour and there is no teenage unemployment. At any higher wage rate, there will be a surplus of teenage labour (unemployment) because the quantity supplied exceeds the quantity demanded.

Use the Table Below to Answer the Following Questions