Figure 10-1

-Refer to Figure 10-1. If the government imposes a minimum wage of $4, then unemployment will increase by
A) 0 workers.
B) 2000 workers.
C) 4000 workers.
D) 5000 workers.

Question

Figure 10-1
 
-Refer to Figure 10-1. If the government imposes a minimum wage of $4, then unemployment will increase by
A) 0 workers. 
B) 2000 workers. 
C) 4000 workers. 
D) 5000 workers.

Quizplus · Accepted Answer

If the minimum wage of $4 is below the equilibrium wage, it will not affect the labor market, and thus unemployment will not increase.

Figure 10-1 -Refer to Figure 10-1. If the Government Imposes a Minimum