Figure 19-1
-Refer to Figure 19-1. What is the change in employment of having the minimum wage at $8 instead of $7?
A)2 million jobs are gained
B)no jobs are gained or lost
C)1 million jobs are lost
D)3 million jobs are lost

Question

Figure 19-1 
-Refer to Figure 19-1. What is the change in employment of having the minimum wage at $8 instead of $7?
A)2 million jobs are gained 
B)no jobs are gained or lost 
C)1 million jobs are lost 
D)3 million jobs are lost

Quizplus · Accepted Answer

Looking at the graph, at a minimum wage of $8, the quantity of labor demanded drops from 105 million to 104 million, suggesting a decrease in employment. The difference is about 1 million, indicating that 1 million jobs would be lost. Option A can be immediately ruled out as it shows that there would be a gain in employment, which contradicts the graph. Option B can also be ruled out as we see a shift in the quantity of labor demanded as the minimum wage changes. Option D is an exaggeration as the decrease in employment is not as significant as 3 million.

Figure 19-1 -Refer to Figure 19-1. What Is the Change in Employment