Figure 28-1

-Refer to Figure 28-1.If there were no minimum wage and then the government instituted a minimum wage of $6,in this market,unemployment would
A)fall by 10.
B)fall by 20.
C)increase by 10.
D)increase by 20.

Question

Figure 28-1
 
-Refer to Figure 28-1.If there were no minimum wage and then the government instituted a minimum wage of $6,in this market,unemployment would
A)fall by 10. 
B)fall by 20. 
C)increase by 10. 
D)increase by 20.

Quizplus · Accepted Answer

A minimum wage set above the equilibrium wage creates a surplus of labor, leading to increased unemployment. If the minimum wage is $6 and it is above the equilibrium wage, unemployment will increase by the difference between the quantity of labor supplied and the quantity of labor demanded at that wage, which is 20.

Figure 28-1 -Refer to Figure 28-1.If There Were No Minimum Wage and No