The accompanying graph shows the labor market in the country of Harmonia. Assume that the Harmonia labor market is in equilibrium the Harmonian government decides to enact a minimum wage of $6.

a. Show the new minimum wage on the graph by shifting the minimum wage line.

Labor MarketWage Rate ($/hour)Quantity of Labor (millions of workers)020406080100120140160180200012345678910LDLSMinimum Wage

b. What is the increase in unemployment as a result of the minimum wage?

millionmillion

c. Which type of unemployment is affected by the new minimum wage?

structural unemployment

cyclical unemployment

frictional unemployment