Author Question: The above figure illustrates the labor market for fast food restaurants in a small city in Peru. ... (Read 155 times)

Zulu123

  • Hero Member
  • *****
  • Posts: 525
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

  • Sr. Member
  • ****
  • Posts: 337
Answer to Question 1

D

Answer to Question 2

B



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question


 

Did you know?

Although not all of the following muscle groups are commonly used, intramuscular injections may be given into the abdominals, biceps, calves, deltoids, gluteals, laterals, pectorals, quadriceps, trapezoids, and triceps.

Did you know?

The average human gut is home to perhaps 500 to 1,000 different species of bacteria.

Did you know?

The average adult has about 21 square feet of skin.

Did you know?

The word drug comes from the Dutch word droog (meaning "dry"). For centuries, most drugs came from dried plants, hence the name.

Did you know?

Allergies play a major part in the health of children. The most prevalent childhood allergies are milk, egg, soy, wheat, peanuts, tree nuts, and seafood.

For a complete list of videos, visit our video library