Use the Following Diagram to Answer the Following Questions

question 57

Multiple Choice

Use the following diagram to answer the following questions.

-Refer to Minimum Wage. The imposition of a minimum wage would:

• A) increase the wage from W₁ to W₂.
• B) decrease the wage from W₂ to W₁.
• C) decrease the wage from W₁ to W₃.
• D) cause the equilibrium wage to increase.

---

Definitions:

Greater Competition

An increase in the number of competitors in a market, which can lead to improvements in quality, innovation, and pricing for consumers.

Outside Distractions

External factors or stimuli that divert attention away from a focal task or goal.

Profit Margins

The percentage of revenue that remains as profit after all expenses have been subtracted.

Company Decisions

Involves choices made by a business entity's leadership that affect its operations, strategies, and future direction.