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

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) waste policy effort, as there would be no effect whatsoever in the labour market.
C) increase wages and maintain employment but create a pool of unemployed workers.
D) increase wages and create a shortage of workers.
E) decrease wages but employment would remain the same.