Several Members of Parliament Have Been Greatly Concerned About the Fairness

Multiple Choice

Several Members of Parliament have been greatly concerned about the fairness of salaries in the marketplace. They are contemplating enacting a law that would fix the wage rate at WA. Their aides have returned with the results of an investigation into the matter, as portrayed in Graphs A and B.
FIGURE 11-1

-Refer to Figure 11-1. If the wage law were NOT enacted, what would the prevailing wage rate and quantity of labour in the marketplace for K-12 teachers at equilibrium be?

A) WB and Q1, respectively
B) WA and Q2, respectively
C) WA and Q3, respectively
D) WB and Q2, respectively