Economics 0455 · IGCSE · Workers

Workers — practice question

On the diagram, $D_1D_1$ and $S_1S_1$ show the demand for and the supply of labour. $W$ shows a legal minimum wage. If immigrant labour enters the market, the labour supply curve moves from $S_1S_1$ to $S_2S_2$. How many people would be employed if the minimum wage legislation were then removed?

  • A4 million
  • B5 million
  • C6 million
  • D7 million

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