Figure 19-6
-Refer to Figure 19-6. This figure depicts labor demand and supply for the widget industry. The market equilibrium wage is $15. If the minimum wage in the economy is $12.50, how many hours of labor will be demanded from firms in the widget industry?

Question

Figure 19-6 
-Refer to Figure 19-6. This figure depicts labor demand and supply for the widget industry. The market equilibrium wage is $15. If the minimum wage in the economy is $12.50, how many hours of labor will be demanded from firms in the widget industry?

Quizplus · Accepted Answer

Since the minimum wage of $12.50 is below the market equilibrium wage of $15, it does not affect the market. Therefore, the quantity of labor demanded remains at the equilibrium level, which is 75 hours.

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