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FIGURE 14-2 -Refer to Figure 14-2.Suppose the Labour Market Is Perfectly Competitive.If

Question 44

Multiple Choice

FIGURE 14-2 -Refer to Figure 14-2.Suppose the labour market is perfectly competitive.If a minimum wage of W<sub>4</sub> is then established,the predicted change in the wage is A) an increase in the wage paid. B) a decrease in the wage paid. C) no change in the wage paid. D) a decrease equal to W<sub>1</sub> - W<sub>4</sub>. E) an increase equal to W<sub>1</sub> - W<sub>4</sub>. FIGURE 14-2
-Refer to Figure 14-2.Suppose the labour market is perfectly competitive.If a minimum wage of W4 is then established,the predicted change in the wage is


A) an increase in the wage paid.
B) a decrease in the wage paid.
C) no change in the wage paid.
D) a decrease equal to W1 - W4.
E) an increase equal to W1 - W4.

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