Suppose the figure above illustrates the market for labor. Price is the hourly wage rate in dollars, and quantity measures the number of workers. Imposing a minimum wage of $4 will result in
• Unemployment is 0, and firms will hire 60 workers.
• Unemployment of 30, and firms will hire 40 workers.
• Unemployment of 0, and firms will hire 40 workers.
• Unemployment of 30, and firms will hire 60 workers.
TP
12
11
10
9
8
7
6
4
2
1
10 20 30 40 so 60 70 80 90 100110120 Q