5. The competitive market for unskilled labour is:

$

Wage Labour supply Labour demand

$9 15,000 18,000

11 17,000 17,000

13 19,000 16,000

15 21,000 15,000

17 23,000 14,000

19 25,000 13,000

a) "An increase in thedemandfor labour will cause the employment to rise, but the competitive wage to fall".TRUE or FALSE explain.

b) "If the government imposes aminimum wage of $15per hour, there will be 21,000 working and 4,000 unemployed."TRUE or FALSE explain.