Figure 28-3
-Refer to Figure 28-3. If the government imposes a minimum wage of $8, then how many workers will be unemployed?

Question

Figure 28-3 
-Refer to Figure 28-3. If the government imposes a minimum wage of $8, then how many workers will be unemployed?

Quizplus · Accepted Answer

At a wage of $8, the quantity of labor supplied is greater than the quantity demanded by the firms in the market, resulting in a surplus of labor or unemployment of 7,000 workers. This is found by the vertical distance between the quantity of labor supplied at $8 and the quantity of labor demanded by the firms at $8.

Figure 28-3 -Refer to Figure 28-3. If the Government Imposes a Minimum