-Refer to Exhibit 4-10.Suppose that the government imposes a minimum wage of $7.The minimum wage will result in a ___________ of ________ thousand unskilled workers.

Question

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-Refer to Exhibit 4-10.Suppose that the government imposes a minimum wage of $7.The minimum wage will result in a ___________ of ________ thousand unskilled workers.

Quizplus · Accepted Answer

A minimum wage set above the equilibrium wage creates a surplus of labor because the quantity of labor supplied exceeds the quantity of labor demanded. In this case, setting a minimum wage of $7 leads to a surplus of 2 thousand unskilled workers, as more workers are willing to work at the higher wage than there are jobs available at that wage.

​ ​-Refer to Exhibit 4-10.Suppose That the Government Imposes a Minimum

-Refer to Exhibit 4-10.Suppose That the Government Imposes a Minimum