-The above figure shows a labor market.Before the minimum wage of $8 an hour is imposed,employment equals ________ workers; after the minimum wage of $8 an hour is imposed,employment equals ________ workers.
A) 80,000; 40,000
B) 40,000; 80,000
C) 60,000; 40,000
D) 60,000; 80,000
E) 80,000; 60,000

Question

-The above figure shows a labor market.Before the minimum wage of $8 an hour is imposed,employment equals ________ workers; after the minimum wage of $8 an hour is imposed,employment equals ________ workers.
A) 80,000; 40,000 
B) 40,000; 80,000 
C) 60,000; 40,000 
D) 60,000; 80,000 
E) 80,000; 60,000

Quizplus · Accepted Answer

Before the minimum wage is imposed, the labor market is in equilibrium where supply equals demand, which typically occurs at the intersection point on a supply and demand graph. After the imposition of a minimum wage that is above the equilibrium wage, the quantity of labor supplied exceeds the quantity demanded, leading to a decrease in employment. Therefore, the correct answer reflects a decrease in employment following the imposition of the minimum wage.

-The Above Figure Shows a Labor Market