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

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) the labour market is in disequilibrium. 
B) the amount of labour employed will rise from quantity F to quantity C. 
C) there will be excess demand of AC in the labour market. 
D) there will be unemployment of AC in the labour market. 
E) the free- market equilibrium wage is P0 and the labour market is unaffected by the minimum wage.

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) the labour market is in disequilibrium. 
B) the amount of labour employed will rise from quantity F to quantity C. 
C) there will be excess demand of AC in the labour market. 
D) there will be unemployment of AC in the labour market. 
E) the free- market equilibrium wage is P0 and the labour market is unaffected by the minimum wage.

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