The Table Below Shows the Competitive Labour Demand and Labour

question 40

Multiple Choice

The table below shows the competitive labour demand and labour supply schedules in a particular labour market. $\begin{array}{|l|l|l|}\hline \text { Wage Rate } & \text { Demanded } & \text { Supplied } \\(\$ / \text { hour }) & \text { Quantity of } & \text { Quantity }\\&\text { Labour } & \text { of Labour } \\&\text { (hours/month) }&\text { (hours/month) }\\\hline \$ 4 & 1300 & 500 \\\hline \$ 6 & 1000 & 1000 \\\hline \$ 8 & 800 & 1300 \\\hline \$ 9 & 400 & 1500 \\\hline 11 & 200 & 1800 \\\hline \end{array}$
$\text { TABLE } 14-1$
-Refer to Table 14- 1. In a competitive labour market, a legislated minimum wage imposed at $8 per hour would

• A) have no effect on the competitive equilibrium level of employment.
• B) lead to an equilibrium wage lower than the competitive wage.
• C) have no effect on the competitive equilibrium wage.
• D) lead to unemployment of 300 units.
• E) lead to unemployment of 500 units.

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