-Refer to Exhibit 4-6.Suppose the minimum wage is set at $5.The result will be
A) unemployment.
B) a shortage of unskilled labor.
C) no impact on the unskilled labor market.
D) a prolonged surplus of unskilled labor.
E) none of the above

Question

-Refer to Exhibit 4-6.Suppose the minimum wage is set at $5.The result will be
A) unemployment. 
B) a shortage of unskilled labor. 
C) no impact on the unskilled labor market. 
D) a prolonged surplus of unskilled labor. 
E) none of the above

Quizplus · Accepted Answer

If the minimum wage is set at $5 and it is below the equilibrium wage, it will have no impact on the unskilled labor market.