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Assume that labor demand is given by Qd = 200 - 20P and labor Supply is given by Qs = 10P - 10, where P = wage and Q = quantity of labor. If a minimum wage of $8 is imposed on this market, what will be the impact on consumer and producer surplus in this labor market?
a. There will be no change in consumer and producer surplus in the labor market due to the minimum wage.
b. There will be a welfare gain of $40.
c. Both consumers and producers of labor will benefit from the minimum wage but we don't have enough information to determine the amount
d. There will be a welfare loss of $30.
e. There will be a gain in consumer surplus but a loss in producer surplus.
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