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

-(Exhibit: The Minimum Wage) Give a minimum wage of Wm, the loss in employment is _______ and the change in the wage is _______ .
A) L₁-L₂; Wm-W₁
B) L₁-L₃; W₀-W₁
C) L₂-L₃; W₀-Wm
D) None of the above are correct.

Question

Use the following to answer question(s): The Minimum Wage
 
-(Exhibit: The Minimum Wage) Give a minimum wage of Wm, the loss in employment is _______ and the change in the wage is _______ .
A) L₁-L₂; Wm-W₁ 
B) L₁-L₃; W₀-W₁ 
C) L₂-L₃; W₀-Wm 
D) None of the above are correct.

Quizplus · Accepted Answer

The loss in employment is the difference between the initial employment level (L₁) and the new lower employment level (L₂) after the minimum wage is imposed. The change in wage is the difference between the new minimum wage (Wm) and the initial wage (W₁).

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