-The above figure shows the market for finish carpenters in Bozeman.If there is a minimum wage set at $18,then there will be
A) unemployment of 200 workers.
B) a surplus of 200 workers.
C) unemployment of 400 workers.
D) a surplus of 400 workers.
E) no unemployment of workers and no surplus of workers.

Question

-The above figure shows the market for finish carpenters in Bozeman.If there is a minimum wage set at $18,then there will be
A) unemployment of 200 workers. 
B) a surplus of 200 workers. 
C) unemployment of 400 workers. 
D) a surplus of 400 workers. 
E) no unemployment of workers and no surplus of workers.

Quizplus · Accepted Answer

At a minimum wage of $18, the quantity of labor supplied is 600 workers, while the quantity of labor demanded is 400 workers. This creates a surplus of 200 workers, meaning that there are more workers willing to work at the minimum wage than there are jobs available.

-The Above Figure Shows the Market for Finish Carpenters in Bozeman.If