-Refer to the Graph Above to Answer This Question

question 49

Multiple Choice

-Refer to the graph above to answer this question.What is the result if the government establishes a minimum wage of $5 in this market?

• A)There would be 2,000 unemployed workers.
• B)There would be 3,000 unemployed workers.
• C)Firms would employ 18,000 workers.
• D)Firms would employ 21,000 workers.
• E)It would have no effect on the market.

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Definitions:

Saving

The portion of income not spent on current expenditures or taxes, typically set aside for future use or investment.

Disposable Income

Funds households can allocate for spending and saving purposes after income taxes are subtracted.

Consumption

The use of goods and services by households, representing the end-use of products and services in an economy.

Saving

The act of setting aside a portion of current income for future use, typically in a bank account, investments, or other forms of saving vehicles.