Graph 21-1
-Refer to Graph 21-1.According to the graph, if the government imposes a minimum wage below Wo, it is likely to:

Question

Graph 21-1 
-Refer to Graph 21-1.According to the graph, if the government imposes a minimum wage below Wo, it is likely to:

Quizplus · Accepted Answer

The graph shows that at a minimum wage below Wo, the quantity of labor demanded (Qd) is higher than the quantity of labor supplied (Qs), leading to a surplus of labor. This surplus will result in a decrease in employment to a level below Qo, as employers will only need to hire a limited number of workers at lower wages. Therefore, option C is the best answer. Option A is incorrect because a minimum wage below Wo will have an impact on employment. Option B is incorrect because a minimum wage below Wo will provide less income to the working poor than they collectively received before the minimum wage was set. Option D is incorrect because a decrease in employment will not lead to an increase in employment.

Graph 21-1 -Refer to Graph 21-1.According to the Graph, If the Government