​Figure 52

Multiple Choice

​Figure 5.2. The figure shows the supply and demand curves of a firm.
-Which of the following is true?​

A) ​If minimum wage is set below the equilibrium wage, it leads to a labor surplus.
B) ​If anything interferes with the voluntary exchanges that make up a market, equilibrium does not occur.
C) ​Minimum wage helps deal with the problem of unemployment in the market for unskilled labor.
D) ​Producers are willing to employ more labor at a minimum wage.
E) ​Minimum wage leads to a situation of labor deficit in a market.