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Question
Use the following table to answer the following questions.
| Wage Rate | Quantity of Labor Demanded | Quantity of Labor Supplied |
| $5.00 | 175,550,000 | 120,000,000 |
| $5.50 | 162,000,000 | 136,485,000 |
| $6.00 | 153,300,020 | 153,300,020 |
| $6.50 | 148,600,579 | 155,250,000 |
| $7.00 | 142,050,000 | 157,132,360 |
| $7.50 | 139,630,000 | 159,800,000 |
| $8.00 | 135,000,000 | 161,000,785 |
If a minimum wage is established at $7.50, what would be the amount of disequilibrium in the labor market?
a. There would be a shortage of labor of 20,170,000.
b. There would be a surplus of labor of 20,170,000.
c. There would be neither a shortage nor a surplus.
d. A labor shortage of 20,170,000 would be eliminated because individuals would decide to work in the illegal black market.
e. A labor shortage of 20,170,000 would increase as individuals find work in the illegal black market.
Answer
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