Economics (AS & A Level) · Oct / Nov 2023 · Paper 31 · Question 12

The diagram shows the demand for and supply of labour. The government announces a minimum wage of W1. Which area represents the increase in the economic rent of workers who will continue to be employed at the minimum wage?

1. AX
2. BY
3. CX + Y
4. DX + Y + Z

As printed in the paper