Table 3.2 describes the market for day-care workers in the city of Vishna (quantity of workers in hundreds).

-Refer to Table 3.2 to answer this question.What would happen if the government were to establish a minimum wage of $6.50 an hour?

Question

Table 3.2 describes the market for day-care workers in the city of Vishna (quantity of workers in hundreds).
 
-Refer to Table 3.2 to answer this question.What would happen if the government were to establish a minimum wage of $6.50 an hour?

Quizplus · Accepted Answer

Establishing a minimum wage above the equilibrium wage (assumed to be $6 from the context) would result in a surplus of labor, meaning there would be more workers willing to work at the new wage than there are jobs available, leading to unemployment.

Table 32 Describes the Market for Day-Care Workers in the City