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Short description: A graph plots quantity against dollars. Long description: The horizontal axis representing the quantity lists the following values: A, B, F, D, and
Short description: A graph plots quantity against dollars. Long description: The horizontal axis representing the quantity lists the following values: A, B, F, D, and C. The vertical axis representing dollars lists the following values from top to bottom: P subscript 2, P subscript 0, and P subscript 3. The graph plots two lines. A decreasing line representing demand passes through the following points: (B, P subscript 2), (F, P subscript 0), and (C, P subscript 3). An increasing line representing supply passes through the following points: (A, P subscript 3), (F, P subscript 0), and (D, P subscript 2). The two lines intersect at E (F, P subscript 0). FIGURE 5-1 Refer to Figure 5-1. If the diagram applies to the labour market, and P3 represents a legislated minimum wage, a. there will be unemployment of AC in the labour market. b. the free-market equilibrium wage is P0 and the labour market is unaffected by the minimum wage. c. the labour market is in disequilibrium. d. there will be excess demand of AC in the labour market. e. the amount of labour employed will rise from quantity F to quantity C
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