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

-(Exhibit: The Minimum Wage) Instituting a minimum wage causes a _______ of workers amounting to _______ workers.
A) shortage; L₂-L₃
B) surplus; L₁-L₂
C) surplus; L₃-L₂
D) shortage; L₁-L₃

Question

Use the following to answer question(s): The Minimum Wage
 
-(Exhibit: The Minimum Wage) Instituting a minimum wage causes a _______ of workers amounting to _______ workers.
A) shortage; L₂-L₃ 
B) surplus; L₁-L₂ 
C) surplus; L₃-L₂ 
D) shortage; L₁-L₃

Quizplus · Accepted Answer

Instituting a minimum wage above the equilibrium wage results in a surplus of workers because more workers are willing to work at the higher wage (L₃) than there are jobs available (L₂), leading to unemployment of L₃-L₂ workers.

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