Figure 3.4

-In Figure 3.4, if the wage rate in market A and market B were set at $15, then

Question

Figure 3.4
 
-In Figure 3.4, if the wage rate in market A and market B were set at $15, then

Quizplus · Accepted Answer

At a wage rate of $15, the quantity of workers supplied in market A would increase from 20,000 to 25,000 (point A to point B on the supply curve), while the quantity of workers demanded in market A would decrease from 30,000 to 25,000 (point A to point B on the demand curve). This creates a shortage of workers in market A. Similarly, at a wage rate of $15, the quantity of workers supplied in market B would decrease from 30,000 to 25,000 (point A to point B on the supply curve), while the quantity of workers demanded in market B would increase from 20,000 to 25,000 (point A to point B on the demand curve). This creates a surplus of workers in market B. Therefore, the correct answer is C.

Figure 3.4 -In Figure 3.4, If the Wage Rate in Market a Rate