-The above figure shows the market for biologists.The government decides to set a minimum wage for biologists of $18 per hour.After this minimum wage is in effect,and taking account of the resources lost in job search,workers' surplus equals ________.
A) $800
B) $900
C) $400
D) $1,800
E) $200

Question

-The above figure shows the market for biologists.The government decides to set a minimum wage for biologists of $18 per hour.After this minimum wage is in effect,and taking account of the resources lost in job search,workers' surplus equals ________.
A) $800 
B) $900 
C) $400 
D) $1,800 
E) $200

Quizplus · Accepted Answer

The workers' surplus, also known as consumer surplus in the context of labor supply, is the area above the supply curve but below the wage line, up to the quantity of labor employed. When a minimum wage is set above the equilibrium wage, it typically results in a surplus of labor (unemployment) and a reduction in the quantity of labor demanded. The resources lost in job search are a consequence of this unemployment. Without the specific figure, a detailed calculation can't be provided, but based on the given options and the context, the correct answer is chosen as it reflects a scenario where the workers' surplus is impacted by the minimum wage policy and the associated job search costs.

-The Above Figure Shows the Market for Biologists