FIGURE 14- 5
-Refer to Figure 14- 5. Suppose this labour market is competitive. If a minimum wage of W4 is then imposed, the number of unemployed workers would be

Question

Quizplus · Accepted Answer

Imposing a minimum wage of W4 would set the wage rate above the equilibrium wage rate (W3). As a result, the quantity of labor supplied (Q5) would exceed the quantity of labor demanded (Q1), leading to unemployment. The number of unemployed workers would be the difference between Q5 and Q1, which is Q5-Q1. Therefore, the correct answer is D.

FIGURE 14- 5 -Refer to Figure 14- 5. Suppose This Labour Market Is