If the market for day care workers is in equilibrium at $5.00 per hour as shown in this diagram,a minimum wage of $8.00 per hour will

Question

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A minimum wage of $8.00 per hour creates a surplus of labor in the market for day care workers. At the minimum wage level, the quantity of labor supplied exceeds the quantity demanded, resulting in unemployment. The difference between the quantity supplied and the quantity demanded is the amount of unemployment. From the diagram, at $8.00 per hour, the quantity supplied is 1200 workers, while the quantity demanded is only 600 workers. Therefore, the amount of unemployment will be 600 workers (1200-600 = 600).

If the Market for Day Care Workers Is in Equilibrium