The Data Shows the Market for Daycare Workers in a Particular

question 82

Multiple Choice

The data shows the market for daycare workers in a particular city:
(quantity of workers in hundreds)

-Refer to the information above to answer this question.Suppose that after the imposition of a minimum wage of $6.50,a number of new daycare centres opened up increasing the demand for workers by 400.In what way would this market be affected?

• A)The wage would increase to $7 and there would be no unemployment.
• B)The wage would remain at $6.50 but there would now be no unemployment.
• C)The wage would remain at $6.50 and there would now be 200 unemployed daycare workers.
• D)The wage would remain at $6.50 and there would now be 200 vacancies.
• E)The wage would drop to $5 and there would be no unemployment.

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Definitions:

Fixed Costs

Costs that remain constant for a business over a period, regardless of the level of goods or services produced.

Composite Units

Units formed by combining different but related items, often used in production or inventory management.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much contributes to covering fixed costs and generating profit.

Fixed Costs

Expenses that do not change in proportion to the activity of a business.