Wage rate (dollars per hour) The graph shows the market for gardeners organized
ID: 1122094 • Letter: W
Question
Wage rate (dollars per hour) The graph shows the market for gardeners organized by the Gardeners' Federation in Detroit, Michigan 25.00 If the Gardeners' Federation sets the minimum wage for gardeners at $10 00 an hour, this minimum wage is 22.5 20.00- O A. efficient because the equilibrium quantity of labor and the equilibrium wage rate do not change and fair because everyone who wants a job as a gardener at the equilibrium wage rate can find one inefficient because at the minimum wage a surplus of labor arises and fair because all transactions are voluntary 17.50 B. 15.00- inefficient because at the minimum wage a surplus of labor arises and unfair because employers must pay more than the equilibrium price for labor ° C. 12.50 1000- O D. efficient because the equilibrium quantity of labor and the equilibrium wage 7.50- rate do not change and unfair because employers must pay more than the equilibrium price for labor 5.00 0 25 50 75 100 125 150 175 200 Quantity (gardeners)Explanation / Answer
Answer
Option A
the market is in equilibrium at Qd=Qs where wage=$15 which is above minimum wage so the market will clear at equilibrium wage and no one will hurt because of it.
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