Figure 9-1
This figure shows the effect of a minimum-wage law.
-Refer to the Figure 9-1.Which of the following describes the equilibrium point in the diagram where there is an absence of the minimum-wage law?

Question

Figure 9-1
This figure shows the effect of a minimum-wage law. 
-Refer to the Figure 9-1.Which of the following describes the equilibrium point in the diagram where there is an absence of the minimum-wage law?

Quizplus · Accepted Answer

The equilibrium point is where the supply of labor (number of workers) equals the demand for labor (number of jobs) and where the supply and demand curves intersect. In this diagram, without the minimum-wage law, the point of intersection is at a wage rate of $5 and 30 workers. Therefore, the correct answer is B.

Figure 9-1 This Figure Shows the Effect of a Minimum-Wage Law