Refer to Figure 4-18. If this graph represents a labor market ina fictional country, which of the following would be the resultof $5 minimum wage?4-18.pngPrice$5.004.002.0025456075it would cause a surplus of labor, also known asunemployment, equal to 35 workers.O it would make 20 workers worse off because they wouldgo from a job making $4.00 an hour to having no job atall.O it would make 25 workers better off because now theymake $5.00 an hour instead of $4.00 an hour.O All of the above are correct.

Answered: Refer to Figure 4-18. If this graph…

Refer to Figure 4-18. If this graph represents a labor market in a fictional country, which of the following would be the result of $5 minimum wage? 4-18.png Price |

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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Question

Refer to Figure 4-18. If this graph represents a labor market in
a fictional country, which of the following would be the result
of $5 minimum wage?
4-18.png
Price
$5.00
4.00
2.00
25
45
60
75
it would cause a surplus of labor, also known as
unemployment, equal to 35 workers.
O it would make 20 workers worse off because they would
go from a job making $4.00 an hour to having no job at
all.
O it would make 25 workers better off because now they
make $5.00 an hour instead of $4.00 an hour.
O All of the above are correct.

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