-The figure above shows the labor market in a region.For a minimum wage to change the wage rate and amount of employment,it must be
A) left to the forces of supply and demand.
B) set above $6 an hour.
C) set equal to $6 an hour.
D) set below $6 an hour.
E) set at $12 per hour.

Question

-The figure above shows the labor market in a region.For a minimum wage to change the wage rate and amount of employment,it must be
A) left to the forces of supply and demand. 
B) set above $6 an hour. 
C) set equal to $6 an hour. 
D) set below $6 an hour. 
E) set at $12 per hour.

Quizplus · Accepted Answer

For a minimum wage to impact the wage rate and employment levels, it must be set above the equilibrium wage rate. In this case, if the equilibrium wage (where supply equals demand) is $6 an hour, setting the minimum wage above this amount (option B) would directly affect both the wage rate and the amount of employment, as it would force employers to pay more than the market rate, potentially leading to reduced employment.

-The Figure Above Shows the Labor Market in a Region