Note AcademyNote Academy
Start

Economics (AS & A Level) · May / June 2026 · Paper 34 · Question 13

9708Labour market forces and government intervention

A country introduces a national minimum wage (NMW) of $10 per hour. In which industry is the NMW likely to cause the most unemployment?

  1. Aequilibrium wage rate before NMW 8, wage elasticity of demand for labour >1, wage elasticity of supply of labour >1
  2. Bequilibrium wage rate before NMW 8, wage elasticity of demand for labour <1, wage elasticity of supply of labour <1
  3. Cequilibrium wage rate before NMW 9, wage elasticity of demand for labour >1, wage elasticity of supply of labour >1
  4. Dequilibrium wage rate before NMW 10, wage elasticity of demand for labour >1, wage elasticity of supply of labour >1

As printed in the paper

Show the answer

Correct answer: A. equilibrium wage rate before NMW 8, wage elasticity of demand for labour >1, wage elasticity of supply of labour >1

Sit this whole paper →More on Labour market forces and government intervention

Make a free account to save your answers and see your weak topics and ask the AI why a wrong answer is wrong.