The above diagram represents the labour market in country X. Point "a" represent...
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The above diagram represents the labour market in country X.
Point "a" represents the initial equilibrium.
The standard labour demand and supply model predicts that setting too high a minimum wage will lead to unemployment.
Which of the diagrams below presents a labour market after the introduction of the minimum wage, such that the segment AB represents the number of of unemployed workers?
1.
2.
3.
4.
0%
100%
0%
0%
0%
0%
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