Refer to the information provided in Figure 28.3 below to answer the question(s) that follow. Figure 28.3
-Refer to Figure 28.3. A minimum wage of $12

Question

Refer to the information provided in Figure 28.3 below to answer the question(s) that follow.  Figure 28.3
-Refer to Figure 28.3. A minimum wage of $12

Quizplus · Accepted Answer

According to Figure 28.3, the equilibrium wage is $10 and the equilibrium quantity of labor is 200. If the minimum wage is set at $12, it is above the equilibrium wage, which will lead to a decrease in the quantity of labor demanded to 160 and an increase in the quantity of labor supplied to 240. This will create a surplus of labor, resulting in an unemployment of 40 (240 - 200). Therefore, the correct answer is C.

Refer to the Information Provided in Figure 28