Figure 19-1

-Refer to Figure 19-1.Some policymakers have argued that the government should establish a "living wage." A living wage would provide workers a reasonable standard of living in their city or region.If a living wage of $10 per hour is established in the market pictured here,we would expect

Question

Figure 19-1
 
-Refer to Figure 19-1.Some policymakers have argued that the government should establish a "living wage." A living wage would provide workers a reasonable standard of living in their city or region.If a living wage of $10 per hour is established in the market pictured here,we would expect

Quizplus · Accepted Answer

If a living wage of $10 per hour is established, it will increase the cost of labor for firms, leading to a decrease in demand for labor. This will cause a decrease in employment to 8 million (as seen in the graph). Therefore, option B is the best choice. Options A, C, and D are incorrect as they do not align with the basic principles of supply and demand in the labor market.

Figure 19-1 -Refer to Figure 19-1.Some Policymakers Have Argued That the Government