Consider the Accompanying Figure Representing the Labor Market Below

question 63

Multiple Choice

Consider the accompanying figure representing the labor market below. If a minimum wage of $12 per hour is imposed in this labor market then worker surplus will ________ and employer surplus will ________.

• A)rise; fall
• B)fall; fall
• C)stay the same; fall
• D)rise; stay the same

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Definitions:

Argument

A set of statements structured to support a conclusion through reasoning.

Earth Spinning

The rotation of the Earth on its axis, causing the cycle of day and night.

Explanation

A statement or account that makes something clear or understandable, often providing the reasons for a phenomenon or event.

Argument

A set of statements or reasons given with the aim of persuading others that an action or idea is right or wrong.