Long-run costs and economies of scale — practice question

The diagram illustrates how introducing a national minimum wage (MW) affects the labour market. What do the distances XY and YZ indicate?

• AXY: increase in employed workers; YZ: redundant existing workers
• BXY: redundant existing workers; YZ: unemployed new entrants
• CXY: redundant existing workers; YZ: increase in employed workers
• DXY: unemployed new entrants; YZ: redundant existing workers