The diagram illustrates what happens when an effective national minimum wage (NMW) is introduced into a labour market with a profit maximising monopsonist employer. What effect does the NMW have on the deadweight welfare loss in this market?
- AIt falls from RST to UVT.
- BIt falls from RSVU to UVT.
- CIt rises from UVT to RST.
- DIt rises from UVT to RSVU.