Figure 20-1 -Refer to Figure 20-1. Based on the Graph of the Graph

question 167

Multiple Choice

Figure 20-1
-Refer to Figure 20-1. Based on the graph of the labor market above, if a minimum wage of $8 per hour is imposed, which of the following will result?

• A) The quantity of labor demanded by firms will rise.
• B) The quantity of labor demanded by firms will fall.
• C) The unemployment rate will fall.
• D) Both A and C will occur.

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