To determine how many people would be unemployed if the local government imposed a minimum wage of $7 in Productionville, we need to analyze the quantity demanded and quantity supplied at that wage.
According to the table:
- At a wage of $7:
- Quantity Demanded = 9,000 units
- Quantity Supplied = 14,000 units
When a minimum wage is set at $7, the quantity supplied (14,000) exceeds the quantity demanded (9,000). Unemployment can be calculated by finding the difference between the quantity supplied and the quantity demanded:
Unemployment = Quantity Supplied - Quantity Demanded
Unemployment = 14,000 - 9,000
Unemployment = 5,000
Therefore, if the local government imposed a minimum wage of $7, there would be 5,000 people unemployed.
The answer is d. 5,000.