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-(Figure: The Effect of a Minimum Wage) Use Figure: The Effect of a Minimum Wage.Suppose the labour market is in equilibrium at E when the government imposes a minimum wage of W_F.The quantity of labour supplied may_____,resulting in structural unemployment.

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Use the following to answer questions:

-(Figure: The Effect of a Minimum Wage) Use Figure: The Effect of a Minimum Wage.Suppose the labour market is in equilibrium at E when the government imposes a minimum wage of W_F.The quantity of labour supplied may_____,resulting in structural unemployment.

Quizplus · Accepted Answer

When a minimum wage is set above the equilibrium wage, the quantity of labor supplied increases to Q_S because more workers are willing to work at the higher wage, but not all can find jobs, leading to structural unemployment.

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