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Unformatted text preview: than the equilibrium quantity, the cost to sellers exceeds the value to buyers and total surplus falls. 3. ANSWER: Before imposing a minimum wage, the quantity of labor demanded would be Qo. After a minimum wage is imposed about Wm, the quantity of labor demanded would be at Qm, Private Goods Ice-cream cones Clothing Congested toll roads Natural Monopolies Fire protection Cable TV Uncongested toll roads Common Resources Fish in the ocean The environment Congested nontoll roads Public Goods National defense Knowledge Uncongested nontoll roads 3 which is less than Qo. Fewer workers would be demanded and those workers from Qm to Qo would be unemployed....
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This note was uploaded on 10/22/2009 for the course ARE 201 taught by Professor Eryuruk during the Fall '08 term at N.C. State.
- Fall '08