The Following Graph Illustrates a Low Wage Labor Market

question 56

Multiple Choice

The following graph illustrates a low wage labor market.
Suppose a minimum wage of $12 is imposed in this labor market to improve the wages of low wage workers.This results in

• A)225 workers losing their jobs.
• B)375 workers receiving $12 an hour.
• C)an improvement in the economic status of the original 375 workers.
• D)a new equilibrium at $12 and 150 workers.

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Definitions:

Distribute

To allocate or spread out resources or goods across different recipients or areas.

Natural Heirs

Individuals who are legally entitled to inherit the estate of a deceased person based on their relationship by blood or adoption.

Testator

An individual who has made a valid will to direct the distribution of their estate after their death.

Abatement

A reduction, decrease, or complete removal, often in reference to taxes, rent, or nuisances.