Use the Following Figure to Answer the Question : Figure

question 55

Multiple Choice

Use the following figure to answer the question : Figure 18-1 :
shows the demand and supply of unskilled labor that determines the equilibrium wage rate in the labor market.The minimum wage rate at $5.15 is higher than the equilibrium wage rate at $4.
-Refer to Figure 18-1.The increase in the number of workers looking for work in this market due to the imposition of a $5.15 minimum wage is _____.

• A)L₁L₃
• B)L₂L₃
• C)OL₁
• D)L₂L₁

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Definitions:

Good X

A term used to denote a specific product or commodity in economic models.

Substitute Goods

Products or services that can be used in place of each other, where an increase in the price of one leads to an increase in demand for the other.

Demand

Demand refers to the quantity of a product or service that consumers are willing and able to purchase at various prices during a given period.

Price Decrease

A reduction in the cost that buyers must pay for a good or service.