The diagram illustrates the supply of, and demand for, labour in an industry. At first, the industry’s labour market is in equilibrium. What effect will the introduction of a minimum wage OW have on the level of employment in the industry?
- AIt will decrease by an amount LM.
- BIt will decrease by an amount LN.
- CIt will increase by an amount LN.
- DIt will increase by an amount MN.