-According to the Above Table, If the Minimum Wage Is

$$\begin{array} { c c c } \begin{array} { c } \text { Real wage rate } \\\text { (2005 dollars } \\\text { per hour) }\end{array} & \begin{array} { c } \text { Quantity of labor demanded } \\\text { (millions of hours } \\\text { per month) }\end{array} & \begin{array} { c } \text { Quantity of labor supplied } \\\text { (millions of hours } \\\text { per month) }\end{array} \\\hline 5 & 360 & 260 \\10 & 325 & 275 \\15 & 300 & 300 \\20 & 280 & 330 \\25 & 250 & 350\end{array}$$
-According to the above table, if the minimum wage is set at $20 per hour, then

A) there is an excess demand for labor.
B) the quantity of labor supplied exceeds the quantity of labor demanded by 50 million hours per month.
C) the quantity of labor demanded will increase until it is equal to the quantity of labor supplied.
D) the labor demand curve will shift until $20 is the new equilibrium real wage.
E) the labor supply curve will shift until $20 is the new equilibrium real wage.

Correct Answer:

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