The Three Diagrams Below Show the Supply and Demand for Teenage

question 19

Multiple Choice

The three diagrams below show the supply and demand for teenage babysitters in one local area. The initial supply curve is S 0 in all cases.
FIGURE 14-3
-Refer to Figure 14-3. Suppose the teenage babysitters in one local area are earning an equilibrium wage of $6 per hour. Now suppose that the local government imposes a minimum wage of $8 per hour for babysitters. Which diagram illustrates the new supply curve SA) for babysitters?

• A) diagram 1
• B) diagram 2
• C) diagram 3
• D) none of the diagrams
• E) any of the diagrams

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Definitions:

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A principle by which items are arranged according to the sequence of letters in the alphabet.