-In Figure 30.2,a minimum wage of $20 will result in a

Question

Quizplus · Accepted Answer

The intersection point of the demand and supply curves is at a wage of $25 and 800 workers. If the minimum wage is set at $20, which is below the equilibrium wage, this will result in a surplus of workers, meaning there will be more workers willing to work at that wage than there are job openings. Therefore, option A is incorrect. Additionally, option B is also incorrect as there will not be a shortage of hours as hours are not represented on the graph. The correct answer is option C, as a $20 minimum wage would result in a surplus of 32 workers, which is the difference between the 432 workers willing to work at that wage and the 400 job openings available.