Suppose the current equilibrium wage rate for lifeguards is $30 an hour in Sydney. A minimum wage law that creates a price floor of $35 an hour leads to

1)

a shortage of lifeguards in Sydney.

2)

a change in the quantity of lifeguards supplied but no change in the quantity of lifeguards demanded.

3)

a surplus of lifeguards in Sydney.

4)

no changes in the lifeguard market.

Question 29 options: