Use the following table to answer the next five questions.

-If a minimum wage is set at $5.50,predict the amount of disequilibrium in the labor market.
A) There would be a labor shortage of 25,515,000.
B) There would be a labor surplus of 25,515,000.
C) There would be neither a shortage nor a surplus.
D) A labor surplus of 25,515,000 would be eliminated because individuals would decide to work in the illegal black market.
E) A labor surplus of 25,515,000 would increase as individuals find work in the illegal black market.

Question

Use the following table to answer the next five questions.
 
-If a minimum wage is set at $5.50,predict the amount of disequilibrium in the labor market.
A) There would be a labor shortage of 25,515,000. 
B) There would be a labor surplus of 25,515,000. 
C) There would be neither a shortage nor a surplus. 
D) A labor surplus of 25,515,000 would be eliminated because individuals would decide to work in the illegal black market. 
E) A labor surplus of 25,515,000 would increase as individuals find work in the illegal black market.

Quizplus · Accepted Answer

At a minimum wage of $5.50, there would be neither a labor shortage nor a labor surplus because the quantity of labor supplied and the quantity of labor demanded would be equal, resulting in a market equilibrium.

Use the Following Table to Answer the Next Five Questions