Figure 6-9 -Refer to Figure 6-9. in This Market, a Minimum Wage

Multiple Choice

Figure 6-9

-Refer to Figure 6-9. In this market, a minimum wage of $7 is

A) binding and creates a labor shortage.
B) binding and creates unemployment.
C) nonbinding and creates a labor shortage.
D) nonbinding and creates neither a labor shortage nor unemployment.