Refer to the Information Provided in Figure 14

Multiple Choice

Refer to the information provided in Figure 14.4 below to answer the questions that follow.
Figure 14.4
-Refer to Figure 14.4.A minimum wage of $8

A) will lead to an excess demand for labor of 20.
B) will lead to an excess demand for labor of 40.
C) will lead to an excess demand for labor of 60.
D) will have no effect because the minimum wage is set below the equilibrium wage and for a minimum wage to have any effect on the labor market it must be above the equilibrium wage.