Suppose that the state of California imposes a minimum wage of $7 per hour. In the entry-level labor

Suppose that the state of California imposes a minimum wage of $7 per hour. In the entry-level labor market in California fast-food restaurants, the quantity of labor demanded at $7 per hour is 800 thousand, and the quantity of labor supplied is 1.2 million. Which of the following is true? a. There is a shortage of 800 thousand workers in the labor market. b. There is a surplus of 400 thousand workers in the labor market. c. There is a shortage of 400 thousand workers in the labor market. d. There is a surplus of 1.2 million workers in the labor market.