Assume That This Graph Illustrates a Perfectly Competitive Labor Market

question 74

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.

---

Definitions:

Illegal Immigrants

Individuals who enter or reside in a country without the legal permission of that country’s government.

Low-skilled Labor

Workers with minimal specialized skills, training, or education who are typically employed in jobs that require basic tasks.

Illegal Immigrants

People who enter or reside in a country without the proper authorization or documentation required by immigration laws.

Compensating Wage

Additional pay or benefits provided to employees to offset unpleasant aspects of a job or workplace demands.