The table below shows the labour demand and labour supply schedules in a competitive labour market.
TABLE 14-1
-Refer to Table 14-1.In a competitive labour market,a legislated minimum wage imposed at $14 per hour would
A) have no effect on the competitive equilibrium level of employment.
B) have no effect on the competitive equilibrium wage.
C) lead to unemployment of 500 hours/month.
D) lead to unemployment of 300 hours/month.
E) lead to an equilibrium wage lower than the competitive wage.
Correct Answer:
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