Improvements in computer technology tend to increase the wage gap between high-s

Question

Improvements in computer technology tend to increase the wage gap between high-skilled workers and low-skilled workers. Some policymakers want to increase the minimum wage in order to reduce the gap between high- and low-paid workers. According to the author, raising the minimum wage might create some unemployment at the entry level to the labor force. The minimum wage is a classic example of a price floor. You may have already covered the effects of price floors. Take a moment to review the possible consequences of a wage floor in the problems below. Suppose the graph in the calculator below represents the market for low-skilled labor in Florida. Use the calculator to solve the problems below.

Explanation / Answer

Here 180000 workers are unemployed. So, "B" is correct option. Whereas "320000" workers are working.

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