Question 6 Not yet answered Points out of 1 P Flag question

Question 6 Not yet answered Points out of 1 P Flag question Figure: Labor Market 2 Wage $10 10 15 20 Quantity of labor Refer to the figure. In the figure, there will be 6 unemployed workers at a minimum wage of Select one: a.S6. b. $8. ?$7. d, $4. o Question 7 Not yet answered Points out of 1 P Flag question For a price floor to prevent market forces from finding the equilibrium price, it must be set: Select one o a. below the equilbrium price, causing a market shortage o b. above the equilibrium price, causing a market shortage. O C. below the equilibrium price, causing a market surplus O d. above the equilibrium price, causing a market surplus Not yet answered Poines out of P Flag question When a price ceilling is in effect: Select one: o a. no mutually beneficial trades between buyers and sellers occur O b. it is impossible to say if any, some. or all beneficial trades between buyers or sellers fall to occur. O c. all mutually beneficial trades between buyers and selers occur. d. some mutually beneficial trades between buyers and sellers do not occur. O

Solution

6. At a minimum wage of $8, labor supplied = 8 and labor demanded = 2. There will be surplus or unemployed labor = (8 - 2) = 6

Answer- option B

7. Price floor means legal minimum price and market price can\'t fall below this price floor. If a price floor prevents market forces from reaching the equilibrium, then it is known as binding price floor and must be set above the equilibrium price. In this case supply will exceed demand and there will be surplus.

Answer- option D