Solved

The Table Below Shows the Labour Demand and Labour Supply

Question 52

Multiple Choice

The table below shows the labour demand and labour supply schedules in a competitive labour market.  Wage Rate  ($/hour)   Quantity  Demanded  of Labour  (hours/month)   Quantity Supplied  of Labour  (hours/month)  1013005001210001000148001300154001500172001800\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Wage Rate } \\\text { (\$/hour) }\end{array} & \begin{array} { c } \text { Quantity } \\\text { Demanded } \\\text { of Labour } \\\text { (hours/month) }\end{array} & \begin{array} { c } \text { Quantity Supplied } \\\text { of Labour } \\\text { (hours/month) }\end{array} \\\hline 10 & 1300 & 500 \\\hline 12 & 1000 & 1000 \\\hline 14 & 800 & 1300 \\\hline 15 & 400 & 1500 \\\hline 17 & 200 & 1800 \\\hline\end{array} 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.

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