Economics (AS & A Level) · Oct / Nov 2022 · Paper 31 · Question 17
9708Labour market forces and government intervention
The diagram shows the labour market for fruit pickers in country X. [diagram: axes with wage on vertical axis and quantity of labourers on horizontal axis; curves labelled marginal wage, average wage, average revenue product, marginal revenue product; W marked on wage axis] If the market was originally in equilibrium, what would happen to wages and employment if a minimum wage of W were imposed?
- Afall; fall
- Bfall; rise
- Crise; fall
- Drise; rise
As printed in the paper
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Correct answer: D. rise; rise
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