-The above figure shows a labor market with a minimum wage of $8 an hour.How many people are employed when the minimum wage is in place?
A) 40,000
B) 60,000
C) 80,000
D) fewer than 40,000
E) more than 80,000

Question

-The above figure shows a labor market with a minimum wage of $8 an hour.How many people are employed when the minimum wage is in place?
A) 40,000 
B) 60,000 
C) 80,000 
D) fewer than 40,000 
E) more than 80,000

Quizplus · Accepted Answer

At a minimum wage of $8 an hour, the quantity of labor demanded by employers (the number of jobs they are willing to offer at that wage rate) is lower than the quantity of labor supplied by workers (the number of workers willing to work at that wage rate). The point where the demand curve intersects the minimum wage line indicates the number of people employed, which is 40,000 in this scenario.

-The Above Figure Shows a Labor Market with a Minimum