FIGURE 14-2 -Refer to Figure 14-2. Suppose the Labour Market Is Perfectly

FIGURE 14-2
-Refer to Figure 14-2. Suppose the labour market is perfectly competitive. If a minimum wage of W 5 were then established, the predicted effect would be which one of the following?

A) Q2 workers would be employed and unemployment would equal Q2Q3.
B) Employment would fall by the amount Q1Q4.
C) Employment would remain the same as in a competitive market.
D) Q3 workers would now be employed.
E) Q4 workers would be employed and there would be no unemployment.