Wage Rate . Quantity of Labor Demanded . Quantity of Labor Supplied
$5.00 . 175,550,000 . 120,000,000
$5.50 . 162,000,000 . 136,485,000
$6.00 . 153,300,020 . 153,300,020
$6.50 . 148,600,579 . 155,250,000
$7.00 . 142,050,000 . 157,132,360
$7.50 . 139,630,000 . 159,800,000
$8.00 . 135,000,000 . 161,000,785
If a minimum wage is set at $5.50, what is the amount of disequilibrium in the labor market?
There would be a labor shortage of 25,515,000.
There would be a labor surplus of 25,515,000.
There would be neither a shortage nor a surplus.
A labor surplus of 25,515,000 would be eliminated because individuals would decide to work in the illegal black market.
A labor surplus of 25,515,000 would increase as individuals find work in the illegal black market.