question 34\nif the current equilibrium wage in a competitive labor market for unskilled workers is $12.00…

question 34\nif the current equilibrium wage in a competitive labor market for unskilled workers is $12.00 per hour, and the government sets the minimum wage at $10.00 per hour, how will the wage and number of workers hired change?\na) wage: increase number of workers: increase\nb) wage: increase number of workers: decrease\nc) wage: decrease number of workers: no change\nd) wage: no change number of workers: increase\ne) wage: no change number of workers: no change

question 34\nif the current equilibrium wage in a competitive labor market for unskilled workers is $12.00 per hour, and the government sets the minimum wage at $10.00 per hour, how will the wage and number of workers hired change?\na) wage: increase number of workers: increase\nb) wage: increase number of workers: decrease\nc) wage: decrease number of workers: no change\nd) wage: no change number of workers: increase\ne) wage: no change number of workers: no change

Answer

Brief Explanations:

In a competitive labor - market, a minimum wage is effective (has an impact) only when it is set above the equilibrium wage. Here, the equilibrium wage is $12 per hour and the minimum wage is set at $10 per hour, which is below the equilibrium wage. So, the market will continue to operate at the equilibrium, and neither the wage nor the number of workers hired will change.

Answer:

E. Wage: No change Number of Workers: No change