FIGURE 5-1
-Refer to Figure 5-1. If the diagram applies to the labour market, and P3 represents a legislated minimum wage,
A) there will be excess demand of AC in the labour market.
B) there will be unemployment of AC in the labour market.
C) the free-market equilibrium wage is P0 and the labour market is unaffected by the minimum wage.
D) the labour market is in disequilibrium.
E) the amount of labour employed will rise from quantity F to quantity C.

Question

FIGURE 5-1
-Refer to Figure 5-1. If the diagram applies to the labour market, and P3 represents a legislated minimum wage,
A) there will be excess demand of AC in the labour market. 
B) there will be unemployment of AC in the labour market. 
C) the free-market equilibrium wage is P0 and the labour market is unaffected by the minimum wage. 
D) the labour market is in disequilibrium. 
E) the amount of labour employed will rise from quantity F to quantity C.

Quizplus · Accepted Answer

The Answer of  FIGURE 5-1
-Refer to Figure 5-1. If the diagram applies to the labour market, and P3 represents a legislated minimum wage,
A) there will be excess demand of AC in the labour market. 
B) there will be unemployment of AC in the labour market. 
C) the free-market equilibrium wage is P0 and the labour market is unaffected by the minimum wage. 
D) the labour market is in disequilibrium. 
E) the amount of labour employed will rise from quantity F to quantity C.

FIGURE 5-1 -Refer to Figure 5-1. If the Diagram Applies to the to the Labour