Exhibit 4-7

-Refer to Exhibit 4-7.How many fewer persons work in the unskilled labor market at the minimum wage (WM)than at the equilibrium wage (W?)?

Question

Exhibit 4-7
 
-Refer to Exhibit 4-7.How many fewer persons work in the unskilled labor market at the minimum wage (WM)than at the equilibrium wage (W?)?

Quizplus · Accepted Answer

To determine the number of fewer persons working in the unskilled labor market at the minimum wage compared to the equilibrium wage, we need to find the difference in the quantity demanded of unskilled labor at a minimum wage (N₁) and the quantity demanded of unskilled labor at the equilibrium wage (N₃). Therefore, the correct choice is (N₁ - N₃) persons, which is answer choice B. Choices A and C involve comparing the quantity supplied rather than the quantity demanded, and choice D only gives the quantity demanded at the minimum wage without comparing it to the equilibrium wage. Therefore, answer choice B is the best choice.

Exhibit 4-7 -Refer to Exhibit 4-7.How Many Fewer Persons Work in the Persons