-The figure above shows the labour market in a region. For a minimum wage to change the wage rate and amount of employment, it must be
A) set at $12 per hour.
B) set above $6 an hour.
C) left to the forces of supply and demand.
D) set equal to $6 an hour.
E) set below $6 an hour.

Question

-The figure above shows the labour market in a region. For a minimum wage to change the wage rate and amount of employment, it must be
A) set at $12 per hour. 
B) set above $6 an hour. 
C) left to the forces of supply and demand. 
D) set equal to $6 an hour. 
E) set below $6 an hour.

Quizplus · Accepted Answer

A minimum wage will only impact the wage rate and employment levels if it is set above the equilibrium wage, which is $6 per hour in this scenario. Setting it at or below $6 would not change the current market conditions.

-The Figure Above Shows the Labour Market in a Region