Author Question: The above figure illustrates the labor market for fast food restaurants in a small city in Peru. ... (Read 157 times)

Zulu123

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The above figure illustrates the labor market for fast food restaurants in a small city in Peru. What would be the effects of a minimum wage imposed at 4 per hour?
 
  A) a shortage of 200 hours
  B) a shortage of 100 hours
  C) a surplus of 200 hours
  D) nothing because the minimum wage has no effect on the equilibrium price and quantity

Question 2

A price below the equilibrium price results in
 
  A) a surplus.
  B) a shortage.
  C) excess supply.
  D) a further price fall.


owenfalvey

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Answer to Question 1

D

Answer to Question 2

B



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