Figure: Labor Market 2 Refer to the figure. In the figure, there will be 6 unemployed workers at a minimum wage of:

Question

Figure: Labor Market 2  Refer to the figure. In the figure, there will be 6 unemployed workers at a minimum wage of:

Quizplus · Accepted Answer

The figure shows that at a minimum wage of $8, the supply of labor (10 workers) exceeds the demand for labor (4 workers) by 6, resulting in 6 unemployed workers. At a lower minimum wage, there would be less unemployment as the quantity demanded of labor would increase to match the quantity supplied. Therefore, $8 is the minimum wage at which the labor market is in equilibrium and there are 6 unemployed workers.

Figure: Labor Market 2 Refer to the Figure