With few applicants and several key positions to fill, the owner of a commercial bakery increased the starting wage offered from $12.00 to $15.00 per hour and was able to fill the positions. Which of the following is true of the $12.00 wage rate?

a. The wage is lower than equilibrium.
b. The wage is at equilibrium.
c. The wage created a surplus.
d. The wage attracted just enough workers.


a. The wage is lower than equilibrium.

Economics

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