Suppose a minimum wage of $4 an hour is in force,resulting in unemployment of 10 million hours.Then the demand for labour increases such that supply and demand intersect at a wage rate of $5 per hour.What will happen to the equilibrium wage rate and employment?
A) The wage rate is $5 an hour and there will be no unemployment.
B) The wage rate is $5 an hour and there will be a surplus of labour.
C) The wage rate is $4 an hour and there will be a surplus of labour.
D) The wage rate is $4 an hour and there will be no unemployment.
E) The wage rate is $4 an hour and there will be unemployment.
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