Use the graph below to answer the following questions.
Figure 28-2

-Refer to Figure 28-2.If the minimum wage fell from $7 to $5,in this market unemployment would
A)fall by 20.
B)fall by 40.
C)be unchanged.
D)would rise by 20.

Question

Use the graph below to answer the following questions.
Figure 28-2
 
-Refer to Figure 28-2.If the minimum wage fell from $7 to $5,in this market unemployment would
A)fall by 20. 
B)fall by 40. 
C)be unchanged. 
D)would rise by 20.

Quizplus · Accepted Answer

If the minimum wage falls from $7 to $5, the quantity of labor demanded increases and the quantity of labor supplied decreases, reducing unemployment by the difference in the quantities, which is 40.

Use the Graph Below to Answer the Following Questions