Figure 28-1
-Refer to Figure 28-1. Which of the following describes the equilibrium point in the diagram in the absence of the minimum-wage law?

Question

Figure 28-1 
-Refer to Figure 28-1. Which of the following describes the equilibrium point in the diagram in the absence of the minimum-wage law?

Quizplus · Accepted Answer

The equilibrium point is where the supply of labor (number of workers) and demand for labor (wages offered) intersect. In the absence of the minimum-wage law, the equilibrium point would be determined solely by market forces. Looking at the graph, the point where the supply and demand curves intersect is at a wage of $5 and 30 workers. Therefore, the correct answer is B.

Figure 28-1 -Refer to Figure 28-1. Which of the Following Describes the Following