-According to the Above Table, If the Minimum Wage Is

question 203

Multiple Choice

$$\begin{array} { c c c } \begin{array} { c } \text { Real wage rate } \\\text { (2005 dollars } \\\text { per hour) }\end{array} & \begin{array} { c } \text { Quantity of labor demanded } \\\text { (millions of hours } \\\text { per month) }\end{array} & \begin{array} { c } \text { Quantity of labor supplied } \\\text { (millions of hours } \\\text { per month) }\end{array} \\\hline 5 & 360 & 260 \\10 & 325 & 275 \\15 & 300 & 300 \\20 & 280 & 330 \\25 & 250 & 350\end{array}$$
-According to the above table, if the minimum wage is set at $20 per hour, then

• A) there is an excess demand for labor.
• B) the quantity of labor supplied exceeds the quantity of labor demanded by 50 million hours per month.
• C) the quantity of labor demanded will increase until it is equal to the quantity of labor supplied.
• D) the labor demand curve will shift until $20 is the new equilibrium real wage.
• E) the labor supply curve will shift until $20 is the new equilibrium real wage.

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Definitions:

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Units of time, typically used in calendars, that approximate the natural period related to the motion of the Moon; typically consisting of 30 or 31 days, except February.

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