Table 28-8
Below is data about the labor market in the state of Northwoods.
-Refer to Table 28-8. If the state government imposed a minimum wage of $9, how many people would be unemployed?
A)0
B)10,000
C)20,000
D)40,000

Question

Table 28-8
Below is data about the labor market in the state of Northwoods. 
-Refer to Table 28-8. If the state government imposed a minimum wage of $9, how many people would be unemployed?
A)0 
B)10,000 
C)20,000 
D)40,000

Quizplus · Accepted Answer

A minimum wage of $9 would create a surplus of labor, meaning more people are willing to work at that wage than there are jobs available. If the equilibrium wage is below $9, the difference between the quantity of labor supplied and the quantity of labor demanded at $9 would be the number of unemployed, which is 20,000.

Table 28-8 Below Is Data About the Labor Market in the State