The equilibrium wage in a local labor market is 10 per hour. If a ...

[ssal]

The equilibrium wage in a local labor market is 10 per hour. If a minimum wage of 15 per hour is imposed, which of the following will occur?
 
  A) There will be a decrease in the quantity of labor supplied by households.
  B) There will be an increase in unemployment.
  C) There will be an increase in the quantity of labor demanded by firms.
  D) All of the above will occur.

Question 2

Refer to Scenario 14-1. M2 in this simple economy equals
 
  A) 3,000. B) 8,000. C) 14,000. D) 21,000.

[diana chang]

Answer to Question 1

B

Answer to Question 2

D