Assume that this graph illustrates a perfectly competitive labor market.
Suppose a minimum wage law required the wage to be at least $20 per hour in this market. If that happened, then:
A. there would be excess demand for person-hours.
B. there would be an excess supply of person-hours.
C. there would be no change in the equilibrium number of person-hours.
D. the demand for person-hours would shift to the right.
Answer: C
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