Use the table below to answer the following questions.
Table 6.2.1

-Table 6.2.1 gives the supply and demand schedules for teenage labour in Genoa City. In an unregulated market,
A)there is no teenage unemployment and the wage rate is $6 per hour.
B)there is no teenage unemployment and the wage rate is $5 per hour.
C)teenage unemployment is 400 hours and the wage rate is $6 per hour.
D)teenage unemployment is 400 hours and the wage rate is $5 per hour.
E)the minimum wage is $7 per hour.

Question

Use the table below to answer the following questions.
Table 6.2.1
 
-Table 6.2.1 gives the supply and demand schedules for teenage labour in Genoa City. In an unregulated market,
A)there is no teenage unemployment and the wage rate is $6 per hour. 
B)there is no teenage unemployment and the wage rate is $5 per hour. 
C)teenage unemployment is 400 hours and the wage rate is $6 per hour. 
D)teenage unemployment is 400 hours and the wage rate is $5 per hour. 
E)the minimum wage is $7 per hour.

Quizplus · Accepted Answer

In an unregulated market, the equilibrium wage rate and quantity of teenage labour is determined at the point where the quantity supplied equals the quantity demanded. From the table, we can see that at a wage rate of $5 per hour, the quantity demanded and supplied is 600 hours, and there is no teenage unemployment. Therefore, choice B is the correct answer.

Use the Table Below to Answer the Following Questions