The table below shows the labour demand and labour supply schedules in a competitive labour market. TABLE 14- 1
-Refer to Table 14- 1.In a competitive labour market,a legislated minimum wage imposed at $10 per hour would
A) lead to an employment level lower than the competitive level.
B) have no effect on the competitive equilibrium level of employment.
C) lead to an equilibrium wage higher than the competitive wage.
D) lead to unemployment of 500 hours/month.
E) lead to over- employment of 500 hours/month.
Correct Answer:
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