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Market A Market B 8.00 7.60- S 15 7.20- Wage (S) 6.80- 6.40- D D 6.40- 0 400 800 1200 0 400 800 1200 Quantity
Market A Market B 8.00 7.60- S 15 7.20- Wage (S) 6.80- 6.40- D D 6.40- 0 400 800 1200 0 400 800 1200 Quantity Quantity Use the supply and demand diagrams for labour markets A and B given above to answer the following question. If a minimum wage of $7.20 is imposed on both markets, then the reduction in employment will be highest in market and unemployment will be highest in market OA. B; B O B. A; B O C. A; A O D. B; A
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