Question: :

According to this graph the existence of a minimum wage in the market for low-skilled workers results in a:

Answer: -surplus of workers

**As you can see in the graph the supply of workers willing to work for this wage is L3, which is larger than the quantity demanded of workers at this price (L2). The surplus is therefore the difference or L3 - L2 = surplus.

Question: A numerical limit on the quantity of a good that can be imported is a:

Answer:

Question: For markets to generate the greatest benefit and function in the most efficient manner they must:

Answer: -be perfectly competitive

**Perfect competition ensures that markets function with no intervention and that prices will be determined by the interaction of supply and demand. A market that functions in this manner generates the maximum amount of consumer surplus.

Question: A legally determined maximum that sellers may charge is known as a:

Answer:

Question: According to this graph the existence of a minimum wage in the market for low-skilled workers results in:

Answer: