Figure 18-3 -Refer to Figure 18-3.If the Relevant Labor Supply Curve Is

Multiple Choice

Figure 18-3

-Refer to Figure 18-3.If the relevant labor supply curve is S₂ and the current wage is W₁,

A) there is a surplus of labor.
B) the quantity of labor demanded exceeds the quantity of labor supplied.
C) an increase in the minimum wage could be employed to restore equilibrium in the market.
D) All of the above are correct.