-The graph shows the labour market for apple pickers in Tasmania. If the government sets a minimum wage of $5 an hour, ________ apple pickers are unemployed.
A) 8,000
B) 14,000
C) 6,000
D) 10,000
E) more than 14,000

Question

-The graph shows the labour market for apple pickers in Tasmania. If the government sets a minimum wage of $5 an hour, ________ apple pickers are unemployed.
A) 8,000 
B) 14,000 
C) 6,000 
D) 10,000 
E) more than 14,000

Quizplus · Accepted Answer

If the minimum wage is set above the equilibrium wage, it creates a surplus of labor, meaning more people want to work at that wage than there are jobs available. The graph likely shows that at $5 an hour, 8,000 apple pickers are unemployed.

-The Graph Shows the Labour Market for Apple Pickers in Tasmania