Economics (AS & A Level) · Feb / March 2023 · Paper 32 · Question 11
9708Labour market forces and government intervention
The diagram shows an industry's demand for and supply of labour. Initially, the labour market is in equilibrium. The government introduces a minimum wage of OW0. What will be the effect on the level of employment in the industry?
- Aa decrease equal to XY
- Ba decrease equal to XZ
- Can increase equal to XY
- Dan increase equal to YZ
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Correct answer: A. a decrease equal to XY
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