Use the following to answer question(s): The Minimum Wage

-(Exhibit: The Minimum Wage) The total income received by the workers when the market is in equilibrium is:
A) W₂ times L₁.
B) W₁ times L₁.
C) W₀ times L₃.
D) W₀ times L₂.

Question

Use the following to answer question(s): The Minimum Wage
 
-(Exhibit: The Minimum Wage) The total income received by the workers when the market is in equilibrium is:
A) W₂ times L₁. 
B) W₁ times L₁. 
C) W₀ times L₃. 
D) W₀ times L₂.

Quizplus · Accepted Answer

In equilibrium, the market wage rate is W₁ and the quantity of labor demanded and supplied is L₁. Thus, the total income received by workers is W₁ times L₁.

Use the Following to Answer Question(s): the Minimum Wage