Use the following to answer question(s): Demand and Supply of Bricklayers in a Perfectly Competitive Labor Market

-(Exhibit: Demand and Supply of Bricklayers in a Perfectly Competitive Labor Market) If the equilibrium wage in the market for bricklayers is $100 a day, but a minimum wage for bricklayers of $130 a day is set by the government:
A) 6 workers will now be hired by the firm.
B) 3 workers who otherwise would have been employed are now unemployed.
C) all bricklayers are better off.
D) the firm will shut down.

Question

Use the following to answer question(s): Demand and Supply of Bricklayers in a Perfectly Competitive Labor Market
 
-(Exhibit: Demand and Supply of Bricklayers in a Perfectly Competitive Labor Market) If the equilibrium wage in the market for bricklayers is $100 a day, but a minimum wage for bricklayers of $130 a day is set by the government:
A) 6 workers will now be hired by the firm. 
B) 3 workers who otherwise would have been employed are now unemployed. 
C) all bricklayers are better off. 
D) the firm will shut down.

Quizplus · Accepted Answer

The minimum wage is set above the equilibrium wage, leading to a surplus of labor of three workers who are now unemployed. The increase in wage benefits those who are still employed, but at the cost of unemployment for some workers. The firm may still be able to operate, but will hire fewer workers.

Use the Following to Answer Question(s): Demand and Supply of Bricklayers