Suppose the Minimum Wage Is $4 Per Hour,and 1,100 Units

question 97

Multiple Choice

Suppose the minimum wage is $4 per hour,and 1,100 units of labour are hired.Then the government raises the minimum wage to $6 per hour,and 900 units are now hired.Choose the correct statement.

• A)Total wages paid to workers has fallen.
• B)The price elasticity of demand for labour is 0.5.
• C)There is unemployment in this labour market.
• D)The quantity of labour supplied is greater at the higher minimum wage.
• E)all of the above except A

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Definitions:

Work in Process Inventory

Goods that are in various stages of the production process but are not yet completed products.

Raw Materials Inventory

The stock of basic materials and components required to manufacture products.

Finished Goods Inventory

Goods that are fully manufactured but have not been purchased or sent out to buyers.

Cost of Goods Manufactured

The total cost of producing goods during a specific period, including costs associated with materials, labor, and overhead.