Figure 4-17 Price $8.00 7.00 6.00 5.00 4.00 30 40 50 60 70 Refer to Figure 4-17 4-17.png. If this figure represented a labor market where the equilibrium price for labor was $6 an hour and the government decided to implement a minimum wage of $8 an hour, which of the following are true? O 30 people would be better off because they get to keep their jobs at the new $8 an hour minimum wage. O 20 people would be made actively worse off because they would have voluntarily worked for $6 an hour, but are now unemployed and have no job at all. O there is a surplus of labor equal to 40 workers that represents an increase in unemployment. All of the answer choices are correct
Figure 4-17 Price $8.00 7.00 6.00 5.00 4.00 30 40 50 60 70 Refer to Figure 4-17 4-17.png. If this figure represented a labor market where the equilibrium price for labor was $6 an hour and the government decided to implement a minimum wage of $8 an hour, which of the following are true? O 30 people would be better off because they get to keep their jobs at the new $8 an hour minimum wage. O 20 people would be made actively worse off because they would have voluntarily worked for $6 an hour, but are now unemployed and have no job at all. O there is a surplus of labor equal to 40 workers that represents an increase in unemployment. All of the answer choices are correct
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter6: Supply, Demand And Government Policies
Section: Chapter Questions
Problem 8PA
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