Figure 28-3
-Refer to Figure 28-3.If the government imposes a minimum wage of $8,then unemployment will increase by
A)0 workers.
B)2,000 workers.
C)4,000 workers.
D)7,000 workers.

Question

Figure 28-3 
-Refer to Figure 28-3.If the government imposes a minimum wage of $8,then unemployment will increase by
A)0 workers. 
B)2,000 workers. 
C)4,000 workers. 
D)7,000 workers.

Quizplus · Accepted Answer

According to the graph, at a minimum wage of $8, the quantity of labor supplied is 9,000 workers, while the quantity of labor demanded is only 5,000 workers. This creates a surplus of labor, leading to unemployment of 4,000 workers (9,000-5,000). Therefore, the correct answer is C.

Figure 28-3 -Refer to Figure 28-3.If the Government Imposes a Minimum Wage