​Figure 53

Multiple Choice

​Figure 5.3. The figure shows the wage rate and the quantity of labor supplied in an unskilled labor market.
-Refer to figure 5.3. Suppose the government imposes a minimum wage of $8. Which of the following is a possible outcome of the imposition of a minimum wage above the equilibrium wage rate?​

A) ​There will be a rightward shift in the labor supply curve.
B) ​There will be a rightward shift in the labor demand curve.
C) ​There will be an increase in the quantity of jobs offered, from Q to Q_II, and a fall in the quantity of labor supplied, from Q to Q_I.
D) ​There will be a fall in the quantity of jobs offered, from Q to Q_I, and an increase in the quantity of labor supplied, from Q to Q_II.
E) ​There will be an increase in the producer surplus, at the minimum wage rate.