-The above figure shows the market for carpenters in Geelong. If there is a minimum wage set at $18, which of the following statements is true?
A) Workers who retain their jobs have their wages rise.
B) Firms' surplus increases with the minimum wage.
C) The quantity supplied of workers is less that quantity demanded.
D) The market is efficient.
E) Unemployment decreases because firms employ their workers more carefully.

Question

-The above figure shows the market for carpenters in Geelong. If there is a minimum wage set at $18, which of the following statements is true?
A) Workers who retain their jobs have their wages rise. 
B) Firms' surplus increases with the minimum wage. 
C) The quantity supplied of workers is less that quantity demanded. 
D) The market is efficient. 
E) Unemployment decreases because firms employ their workers more carefully.

Quizplus · Accepted Answer

Setting a minimum wage above the equilibrium wage increases the wages of workers who retain their jobs, as employers are legally required to pay at least the minimum wage.

-The Above Figure Shows the Market for Carpenters in Geelong