Figure 19-6
-Refer to Figure 19-6. This figure depicts labor demand and supply for the widget industry. The equilibrium market wage is $15. If a labor union forms within the widget industry and subsequently negotiates an hourly wage of $17.50, then there will be an

Question

Figure 19-6 
-Refer to Figure 19-6. This figure depicts labor demand and supply for the widget industry. The equilibrium market wage is $15. If a labor union forms within the widget industry and subsequently negotiates an hourly wage of $17.50, then there will be an

Quizplus · Accepted Answer

When the wage is set above the equilibrium wage (from $15 to $17.50), the quantity of labor supplied exceeds the quantity of labor demanded, creating an excess supply of labor, also known as unemployment. Without specific numbers from Figure 19-6, the exact choice relies on understanding this economic principle.

Figure 19-6 -Refer to Figure 19-6. This Figure Depicts Labor Demand and Labor