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Question 29 The market equilibrium is at price $11/hour. The government imposes a minimum wage of $14. The new equilibrium will be ? A. Not binding and we will have neither a surplus nor a shortage. B. Binding and we will have a surplus. C.Not binding and we will have a shortage D.Binding and we will have a shortage.

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Answer #1

Option B is correct response here

This will be binding and we will have surplus in terms of unemployment

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