-Refer to the above figure. A minimum wage has been set at WM. The amount of unemployment is
A)zero.
B)at Qₑ.
C)QS minus QD.
D)not computable from the information given.

Question

-Refer to the above figure. A minimum wage has been set at WM. The amount of unemployment is
A)zero. 
B)at Qₑ. 
C)QS minus QD. 
D)not computable from the information given.

Quizplus · Accepted Answer

A minimum wage set above the equilibrium wage leads to a surplus of labor, where QS (quantity supplied) exceeds QD (quantity demanded), resulting in unemployment equal to QS minus QD.

-Refer to the Above Figure