-The figure above shows the labor market in a region.If a minimum wage of $8 an hour is imposed,then the quantity of labor supplied is ________ and the quantity of labor demanded is ________.
A) 60,000; 60,000
B) 80,000; 40,000
C) 40,000; 60,000
D) 60,000; 40,000
E) 40,000; 40,000

Question

-The figure above shows the labor market in a region.If a minimum wage of $8 an hour is imposed,then the quantity of labor supplied is ________ and the quantity of labor demanded is ________.
A) 60,000; 60,000 
B) 80,000; 40,000 
C) 40,000; 60,000 
D) 60,000; 40,000 
E) 40,000; 40,000

Quizplus · Accepted Answer

When a minimum wage of $8 an hour is imposed, it typically results in a higher quantity of labor supplied than the equilibrium quantity because more people are willing to work at the higher wage. However, employers demand less labor at this higher wage than at the equilibrium wage, leading to a surplus of labor. Therefore, the quantity of labor supplied increases to 80,000, while the quantity of labor demanded decreases to 40,000.

-The Figure Above Shows the Labor Market in a Region