The following figures show the demand and supply of labor in two different types of labor market. Figure 29.5
In the figures,
D: Demand curve for labor
S: Supply curve of labor
MRP: Marginal revenue product
MFC: Marginal factor cost
Refer to Figure 29.5.If a minimum wage of $10 is set by the government, then in market A:
A) a shortage of 20 labor hours is created.
B) the quantity demanded for labor rises to 20 labor hours.
C) a shortage of 15 labor hours is created.
D) a surplus of 20 labor hours is created.
E) a surplus of 10 labor hours is created.
Correct Answer:
Verified
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