Suppose the equilibrium wage rate for apricot pickers is $9.00 per hour in California and at that wage rate the equilibrium quantity of apricot pickers is 14,000.If the minimum wage is set at $7.50 per hour,then the
A) quantity of apricot pickers employed increases.
B) quantity of apricot pickers employed decreases.
C) quantity of apricot pickers employed does not change.
D) wage rate for apricot pickers increases.
E) some apricot pickers are unemployed.

Question

Quizplus · Accepted Answer

The minimum wage of $7.50 per hour is lower than the equilibrium wage rate of $9.00 per hour, so there is no effect on the quantity of apricot pickers employed. The market is still willing to hire 14,000 apricot pickers at $9.00 per hour, and the minimum wage of $7.50 per hour is not binding. Therefore, the quantity of apricot pickers employed does not change.

Suppose the Equilibrium Wage Rate for Apricot Pickers Is $9