Economics · May / June 2016 · Paper 11 · Question 10

In the diagram, D1D1 and S1S1 represent the demand for and the supply of labour. W indicates a legal minimum wage. An influx of immigrant labour causes the supply curve for labour to shift from S1S1 to S2S2. How many people will be employed if the minimum wage legislation is then abolished?

1. A4 million
2. B5 million
3. C6 million
4. D7 million

As printed in the paper