Figure: Labor Market 
Refer to the figure. Which statement is correct?
A) A price floor set at W1 would cause a labor surplus best labeled by A.
B) A price floor set at W1 would cause a labor surplus best labeled by B.
C) A price floor set at W2 would cause a labor surplus best labeled by A.
D) A price floor set at W2 would cause a labor surplus best labeled by B.
Correct Answer:
Verified
Q204: A price floor causes:
A) excess demand.
B) a
Q205: In the case of a binding price
Q208: The Federal minimum wage causes unemployment MOSTLY
Q211: If a minimum wage is posted in
Q214: Use the following to answer questions:
Figure: Minimum
Q216: Use the following to answer questions: Figure:
Q219: Which statement(s) is TRUE?
I. Price floors are
Q220: A binding price floor leads to a(n):
A)
Q221: Figure: Labor Market 3 Q222: Figure: Minimum Wage for Country A 
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