Multiple Choice
Use the table below to answer the following questions.
Table 6.2.1
-Table 6.2.1 gives the supply and demand schedules for teenage labour in Genoa City.There is a minimum wage set at $16 per hour.Suppose a new fast food restaurant opens and increases the quantity demanded of teenage labour by 400 hours per week at each wage rate.The result is
A) elimination of teenage unemployment and a wage rate of $17 per hour.
B) elimination of teenage unemployment,but the wage rate remains at $16 per hour.
C) some teenage unemployment with the wage rate remaining at $16 per hour.
D) no change in teenage unemployment because the wage rate rises to $17 per hour.
E) a surplus of teenage labour.
Correct Answer:

Verified
Correct Answer:
Verified
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