Suppose That the Free Market Labor Supply and Labor Demand

question 132

Multiple Choice

Suppose that the free market labor supply and labor demand equations are given by Qs = 5W and Qd = 30 − 5W. If the minimum wage were set at $2.50 an hour, how many people would not be able to find work?

• A) 30
• B) 20
• C) 10
• D) 0

---

Definitions:

Creativity

The ability to generate or recognize ideas, alternatives, or possibilities that may be useful in solving problems, communicating with others, and entertaining ourselves and others.

Alone

The state of being by oneself, not accompanied by or in conjunction with others.

Post-Decisional Justification

The cognitive process of justifying one's choices after a decision has been made, often to reduce dissonance.

Discarded Alternatives

Options or solutions that are considered and then rejected during a decision-making process.