The Following Figure Shows the Labor Demand Curve, LD₁, and Labor

question 181

Multiple Choice

The following figure shows the labor demand curve, LD₁, and labor supply curve, LS₁, in a market.

-Refer to the figure above.If the government fixes the minimum wage rate at $15,the unemployment in the market will be ________.

• A) 0 units of labor
• B) 10 units of labor
• C) 20 units of labor
• D) 30 units of labor

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Definitions:

Future Value

The value of an investment at a specific date in the future, considering the interest rate or rate of return it earns over time.

Number of Periods

In finance, it refers to the total duration, measured in time units (such as years or months), over which payments or calculations are spread.

Compounded Semiannually

Refers to the process where interest is added to the principal balance of an investment, loan, or deposit twice a year, resulting in interest being earned on interest.

Future Value

The worth of a current asset or amount of money at a specified time in the future, accounting for specific interest or growth rates.