Assume That This Graph Illustrates a Perfectly Competitive Labor Market

question 115

Multiple Choice

Assume that this graph illustrates a perfectly competitive labor market.
Suppose a minimum wage law required the wage to be at least $20 in this market.If that happened,

• A)there would be an excess supply of worker hours.
• B)there would be excess demand for worker hours.
• C)demand for worker hours would shift to the right.
• D)there would be no change in the hourly wage paid or the number of worker hours hired.

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