Use the figure below to answer the following questions.

Figure 6.2.1
-Refer to Figure 6.2.1. If the minimum wage is set at $6 per hour, what is the level of unemployment in millions of hours?
A)50
B)40
C)20
D)10

Question

Use the figure below to answer the following questions.
  
Figure 6.2.1
-Refer to Figure 6.2.1. If the minimum wage is set at $6 per hour, what is the level of unemployment in millions of hours?
A)50 
B)40 
C)20 
D)10

Quizplus · Accepted Answer

Reading from the graph, at a minimum wage of $6 per hour, we can see that the quantity of labor supplied will be greater than the quantity demanded, resulting in excess supply or unemployment. The vertical distance between the quantity supplied and demanded at this wage rate is 40 million hours. Therefore, the level of unemployment in millions of hours is 40.

Use the Figure Below to Answer the Following Questions