Use the table below to answer the following questions.
Table 6.2.2
-Table 6.2.2 gives the labour demand and labour supply schedules for low-skilled labour.What is the level of unemployment in millions of hours if the minimum wage is set at $13 per hour?
A)70
B)40
C)30
D)20
E)zero

Question

Use the table below to answer the following questions.
Table 6.2.2 
-Table 6.2.2 gives the labour demand and labour supply schedules for low-skilled labour.What is the level of unemployment in millions of hours if the minimum wage is set at $13 per hour?
A)70 
B)40 
C)30 
D)20 
E)zero

Quizplus · Accepted Answer

At a minimum wage of $13 per hour, the quantity of labour demanded is 20 million hours, while the quantity of labour supplied is 90 million hours. Therefore, the level of unemployment is 90 - 20 = 70 million hours.

Use the Table Below to Answer the Following Questions