Figure 19-5
-Refer to Figure 19-5. Given demand for labor, D₁, and supply of labor, S₂, what is the surplus of labor if a minimum wage of $8 per hour is imposed on this market?

Question

Figure 19-5 -Refer to Figure 19-5. Given demand for labor, D₁, and supply of labor, S₂, what is the surplus of labor if a minimum wage of $8 per hour is imposed on this market?

Quizplus · Accepted Answer

The surplus of labor occurs when the minimum wage set is above the equilibrium wage, leading to more people willing to work (supply of labor) than there are jobs available (demand for labor). The difference between the quantity of labor supplied and the quantity of labor demanded at the imposed minimum wage of $8 per hour represents the surplus of labor. Without the specific details from Figure 19-5, the correct answer typically involves understanding this concept, and based on the question, it suggests that the surplus is quantified, with option B (100) being the correct choice.

Figure 19-5 -Refer to Figure 19-5. Given Demand for Labor, D1, and Labor

Figure 19-5 -Refer to Figure 19-5. Given Demand for Labor, D₁, and Labor