What Impact Would an Increase in the Minimum Wage Have

question 167

Multiple Choice

What impact would an increase in the minimum wage have on the quantity demanded and quantity supplied of labour?

• A) It would increase both the quantity demanded and the quantity supplied of labour.
• B) It would decrease both the quantity demanded and the quantity supplied of labour.
• C) It would increase the quantity of labour demanded while decreasing the quantity supplied.
• D) It would decrease the quantity of labour demanded while increasing the quantity supplied.

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Definitions:

Irrigation Pump

A device used to move water from a source to a field to aid in the cultivation of crops.

Breakeven

The point at which total cost and total revenue are equal, meaning there is no net loss or gain.

Markdown

A reduction from the original or usual price of an item or service.

Mark-up

A surplus included in the goods' purchase price to compensate for overhead costs and gain, determining the final sales price.