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-(Figure: The Effect of a Minimum Wage) Use Figure: The Effect of a Minimum Wage. Suppose the labor market is in equilibrium at E when the government imposes a minimum wage of W_F. Structural unemployment, assuming all workers without a job are searching, will equal:

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-(Figure: The Effect of a Minimum Wage) Use Figure: The Effect of a Minimum Wage. Suppose the labor market is in equilibrium at E when the government imposes a minimum wage of W_F. Structural unemployment, assuming all workers without a job are searching, will equal:

Quizplus · Accepted Answer

Structural unemployment due to a minimum wage is the difference between the quantity of labor supplied and the quantity of labor demanded at the minimum wage level. Choice A correctly calculates this as the difference between Q_S (quantity supplied at the minimum wage) and Q_D (quantity demanded at the minimum wage).

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