Economics 2281 · O Level · Workers

Workers — practice question

Within the diagram, $D_1D_1$ and $S_1S_1$ show the demand for labour and the supply of labour. $W$ represents a legal minimum wage. An inflow of immigrant labour increases the supply of labour, so the supply curve moves from $S_1S_1$ to $S_2S_2$. How many people will be employed if the minimum wage legislation is then removed?

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

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