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Figure: The Demand for Bricklayers
-(Figure: The Demand for Bricklayers) Look at the figure The Demand for Bricklayers. The equilibrium market wage for bricklayers is $100 a day, but a minimum wage of $130 a day for bricklayers is set by the government. As a result:
A) six workers will now be hired by the firm.
B) three workers who otherwise would have been employed are now unemployed.
C) all bricklayers are better off.
D) construction firms will shut down.

Question

Use the following to answer questions:
Figure: The Demand for Bricklayers 
-(Figure: The Demand for Bricklayers) Look at the figure The Demand for Bricklayers. The equilibrium market wage for bricklayers is $100 a day, but a minimum wage of $130 a day for bricklayers is set by the government. As a result:
A) six workers will now be hired by the firm. 
B) three workers who otherwise would have been employed are now unemployed. 
C) all bricklayers are better off. 
D) construction firms will shut down.

Quizplus · Accepted Answer

A minimum wage set above the equilibrium wage creates a surplus of labor, meaning fewer workers are hired than would be at the equilibrium wage.

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