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Assume That This Graph Illustrates a Perfectly Competitive Labor Market

Question 18

Multiple Choice

Assume that this graph illustrates a perfectly competitive labor market. Assume that this graph illustrates a perfectly competitive labor market.   Suppose a minimum wage law required the wage to be at least $20 per hour in this market. If that happened, then: A) there would be an excess supply of person-hours. B) there would be excess demand for person-hours. C) the demand for person-hours would shift to the right. D) there would be no change in the equilibrium number of person-hours. Suppose a minimum wage law required the wage to be at least $20 per hour in this market. If that happened, then:


A) there would be an excess supply of person-hours.
B) there would be excess demand for person-hours.
C) the demand for person-hours would shift to the right.
D) there would be no change in the equilibrium number of person-hours.

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