Exhibit 10-4 Supply and demand curves for food servers
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In Exhibit 11-4, suppose that in the interest of boosting incomes of the working poor, Congress imposes a minimum wage of $6.00 per hour. This minimum wage rate creates a(n):
A. new labor market equilibrium.
B. excess demand for labor of 10 thousand food servers.
C. excess supply of labor of food servers.
D. situation of full employment for food servers.
Answer: C
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