Several Members of Parliament have been greatly concerned about the fairness of salaries in the marketplace. They are contemplating enacting a law that would fix the wage rate at WA. Their aides have returned with the results of an investigation into the matter, as portrayed in Graphs A and B.
FIGURE 11-1

-Refer to Figure 11-1. If the government were to impose a wage rate of WA on the computer software programming industry, what would the result in the industry be?

Question

Several Members of Parliament have been greatly concerned about the fairness of salaries in the marketplace. They are contemplating enacting a law that would fix the wage rate at WA. Their aides have returned with the results of an investigation into the matter, as portrayed in Graphs A and B.
FIGURE 11-1
 
-Refer to Figure 11-1. If the government were to impose a wage rate of WA on the computer software programming industry, what would the result in the industry be?

Quizplus · Accepted Answer

Imposing a wage rate of WA, which is above the equilibrium wage, would result in employers wanting to hire fewer programmers than the number of programmers wanting to work, creating a shortage of software programming positions.

Several Members of Parliament Have Been Greatly Concerned About the Fairness