Suppose That the Equilibrium Wage in the Low- Skilled Labor

question 54

Multiple Choice

Suppose that the equilibrium wage in the low- skilled labor market is $6.25 per hour. Further, suppose the federal government raises the minimum wage to $6.00 an hour from its present level of
$5.15. The government's action of increasing the minimum wage will result in:

• A)a shortage of low- skilled labor.
• B)an increase in unemployment.
• C)a decrease in unemployment.
• D)neither a shortage nor a surplus of labor in the low- skilled labor market.

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Definitions:

Definition of "Place"

In marketing, the definition of "place" involves the distribution channels or locations where a product is made available to consumers.

Wholesalers

Businesses that buy large quantities of products from manufacturers or other suppliers and then sell smaller quantities to retailers or other businesses.

Marketing Mix

The combination of factors that can be controlled by a company to influence consumers to purchase its products, traditionally identified as product, price, place, and promotion.

"Place"

One of the four Ps in the marketing mix, referring to the location where a product or service is marketed or made available to consumers.