Suppose the Current Equilibrium Wage Rate for Lifeguards in Sydney

question 62

Multiple Choice

Suppose the current equilibrium wage rate for lifeguards in Sydney is $7.85 an hour. A minimum wage law that creates a price floor of $8.50 an hour leads to

• A) no changes in the lifeguard market.
• B) a shortage of lifeguards in Sydney.
• C) an increase in the number of lifeguards employed.
• D) a change in the quantity of lifeguards supplied but no change in the quantity of lifeguards demanded.
• E) a surplus of lifeguards in Sydney.

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