FIGURE 14- 2 
-Refer to Figure 14- 2.Suppose the labour market is in a monopsonistic equilibrium.If a minimum wage is then imposed at W5,the effect would be to
A) increase employment only.
B) increase wages and create a shortage of workers.
C) decrease wages but employment would remain the same.
D) increase wages and maintain employment but create a pool of unemployed workers.
E) waste policy effort,as there would be no effect whatsoever in the labour market.
Correct Answer:
Verified
Q95: If a union succeeds in shifting the
Q96: FIGURE 14- 2 Q97: Suppose an island economy has only two Q98: The diagram below shows the supply and Q99: An important unanswered question about the role Q101: The following statements describe the adverse effects Q102: FIGURE 14- 1 Suppose an island economy Q103: Labour- market discrimination results in a Q104: Certain professions limit the number of students Q105: The purpose of a labour union is
A)lower supply
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