Figure 15-1
-Refer to Figure 15-1. If unemployment is 2000 workers, then the minimum wage must be
A)$4.
B)$5.
C)$7.
D)$8.

Question

Figure 15-1 
-Refer to Figure 15-1. If unemployment is 2000 workers, then the minimum wage must be
A)$4. 
B)$5. 
C)$7. 
D)$8.

Quizplus · Accepted Answer

According to the graph, at a level of unemployment of 2000 workers, the demand for labor intersects with the supply of labor at a wage rate of approximately $7. Therefore, the minimum wage must be set at least at $7 to ensure that all workers who are willing and able to work can find employment. Choices A, B, and D are not supported by the graph.

Figure 15-1 -Refer to Figure 15-1. If Unemployment Is 2000 Workers, Then