MCQ 1 Consider a competitive labour market in which the current equilibrium wage is £10 per hour. If the government imposes a minimum wage of £8 per hour, in this market we would expect to observe: A a fall in the wage and an increase in the demand for labour a rise in the wage and a fall in the demand for labour C a rise in the wage, but the change in the demand for labour can't be detemined from the information provided D no change in the wage and no change in the demand for labour a fall in the wage, but the change in the demand for labour can't be determined from the information provided I do not want to answer this question. B

MCQ 1 Consider a competitive labour market in which the current equilibrium wage is £10 per hour. If the government imposes a minimum wage of £8 per hour, in this market we would expect to observe: A a fall in the wage and an increase in the demand for labour a rise in the wage and a fall in the demand for labour C a rise in the wage, but the change in the demand for labour can't be detemined from the information provided D no change in the wage and no change in the demand for labour a fall in the wage, but the change in the demand for labour can't be determined from the information provided I do not want to answer this question. B

Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781305971509

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter15: Unemployment

Section: Chapter Questions

Problem 4CQQ

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