Figure 10-1

-Refer to Figure 10-1. If the government imposes a minimum wage of $8, then unemployment will increase by

Question

Figure 10-1
 
-Refer to Figure 10-1. If the government imposes a minimum wage of $8, then unemployment will increase by

Quizplus · Accepted Answer

At the minimum wage of $8, there is now a surplus of workers willing to work at that wage but not enough jobs for all of them. This leads to an increase in unemployment of 4000 workers, represented by the difference between the quantity of labor supplied (8000) and the quantity of labor demanded (4000) at that wage rate.

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