Use the following to answer questions: Figure: Labor Market
-(Figure: Labor Market) Refer to the figure. If this market is initially in equilibrium when a $10 minimum wage is imposed, the quantity of labor employed will fall by:

Question

Use the following to answer questions: Figure: Labor Market 
-(Figure: Labor Market) Refer to the figure. If this market is initially in equilibrium when a $10 minimum wage is imposed, the quantity of labor employed will fall by:

Quizplus · Accepted Answer

The minimum wage creates a surplus of labor, so the quantity of labor employed will fall. The size of the surplus is equal to the difference between the quantity of labor supplied at the minimum wage and the quantity of labor demanded at the minimum wage. In this case, the surplus is 20.

Use the Following to Answer Questions: Figure: Labor Market