Consider the Accompanying Figure Representing the Labor Market Below

question 19

Multiple Choice

Consider the accompanying figure representing the labor market below. Suppose the government passes a minimum wage requiring employers to pay at least $8.00 per hour. Prior to the imposition of the minimum wage, employer surplus is ________ per day, and after the imposition of the minimum wage, employer surplus is ________ per day.

• A)$9,000; $1,000
• B)$9,000; $5,000
• C)$18,000; $2,000
• D)$18,000; $14,000

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Definitions:

Histogram

A histogram is a graphical representation used in statistics that shows the frequency distribution of a dataset by using bars of different heights or lengths.

Appliances Store

An appliances store is a retail establishment specializing in the sale of electrical or mechanical devices used in homes for tasks like cooking, cleaning, or food preservation.

Daily

Occurring every calendar day or pertaining to the activities that take place within the span of a single day.

Heights

The measurement of an individual or object from base to top or from the ground to a specified point.