Assume that this graph illustrates a perfectly competitive labor market.
Suppose a minimum wage law required the wage to be at least $20 per hour in this market. If that happened, then:
A) there would be an excess supply of person-hours.
B) there would be excess demand for person-hours.
C) the demand for person-hours would shift to the right.
D) there would be no change the equilibrium number of person-hours.
Correct Answer:
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