Suppose the Current Equilibrium Wage Rate for Lifeguards in Sydney

Multiple Choice

Suppose the current equilibrium wage rate for lifeguards in Sydney is $7.85 an hour. A minimum wage law that creates a price floor of $8.50 an hour leads to

A) no changes in the lifeguard market.
B) a shortage of lifeguards in Sydney.
C) an increase in the number of lifeguards employed.
D) a change in the quantity of lifeguards supplied but no change in the quantity of lifeguards demanded.
E) a surplus of lifeguards in Sydney.