Exhibit 4-7 Refer to Exhibit 4-7. How many fewer persons work in the unskilled labor market at the minimum wage (W_M)than at the equilibrium wage (W₁)? A)(N₂ - N₁)persons B)(N₁ - N₃)persons C)(N₂ - N₃)persons D)N₃ persons

Question

Quizplus · Accepted Answer

The number of persons working in the unskilled labor market at the minimum wage (W_M) is N₃, while the number of persons working in the unskilled labor market at the equilibrium wage (W₁) is N₁. Therefore, the difference is N₃ - N₁, which is equal to 4 million. Thus, the correct answer is B.

Exhibit 4-7 Refer to Exhibit 4-7. How Many Fewer Persons Work in Persons