Figure 28-3
-Refer to Figure 28-3.If unemployment is 2,000 workers,then the minimum wage must be
A)$4.
B)$5.
C)$7.
D)$8.

Question

Figure 28-3 
-Refer to Figure 28-3.If unemployment is 2,000 workers,then the minimum wage must be
A)$4. 
B)$5. 
C)$7. 
D)$8.

Quizplus · Accepted Answer

According to the graph, when unemployment is at 2,000 workers, the equilibrium wage rate is at $7. Any wage rate below $7 would result in a labor shortage and any wage rate above $7 would result in a surplus of labor. Therefore, the minimum wage must be at least $7 to avoid a shortage of labor. Choices A, B, and D are all below the equilibrium wage rate and would result in a shortage of labor.

Figure 28-3 -Refer to Figure 28-3.If Unemployment Is 2,000 Workers,then the Minimum